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Environmental Guidelines - Table 6

THERMAL, GAS TURBINE, AND DIESEL DRIVEN POWER PLANTS

Fossil fueled steam-cycle power plants produce stack emissions of sulfur oxides, nitrogen oxides and particulates, and may impact water quality from coal pile runoff, ash disposal and cooling water discharge. Combustion turbines are relatively clean and efficient, though they may emit significant amounts of nitrogen oxides. Cooling Water discharged from combined-cycle plants (combustion turbines with a steam turbine that uses waste exhaust heat) can also impact water quality.

The international guidelines presented in this table are condensed from the World Bank Group guidelines applicable to thermal, gas turbine and engine driven power plants that have energy conversions of greater than 10 million BTU/hr, as set forth in the Pollution Prevention and Abatement Handbook (PPAH) and applicable World Bank Group Operational Policies. The guidelines present limits from the PPAH for those air and water contaminants most frequently encountered with these types of power plants. New power plants having an output of 300 MWt (~140 MWe), per Annex D, or plants located in or impacting a sensitive area, will require submission of an Environmental Impact Assessment (Annex E) describing the environmental effects of the project and measures to mitigate the adverse impacts.

Further information relative to the guidelines presented in this Table and a description of measures to control emissions and effluents associated with power plants are contained in the PPAH of the World Bank Group (1998). The PPAH and the World Bank Operational Policies referenced in this Table can be found at: http://www.ifc.org/enviro/EnvSoc/pollution/guidelines.htm. In the case of ambiguity between information contained in this Table and the relevant sections of the PPAH and referenced Operational Policies of the World Bank Group, the guidelines presented within the PPAH and Operational Policies as of December 18, 2003, will prevail for purposes of Ex-Im Bank's review and its determination of a project's compliance with the applicable guidelines of the World Bank Group.

To encourage a reduction in the level of greenhouse gas production from electric power generation, Ex-Im Bank will provide enhanced financial support through its Environmental Exports Program (EEP), as described in Annex F, for thermal power plants that produce fewer than 400 grams of CO₂ per kWh (109 grams C/kWh) of electricity generated.

AIR QUALITY
STACK EMISSIONS - Concentration of contaminants emitted from the stacks of boilers, on a per unit of generation basis or from primary electrical generating equipment such as combustion turbines, should not be diluted nor exceed the following limits during normal operating conditions:

Particulates (<10 microns aerodynamic diameter):- 50 mg/Nm³

Note: Nm3 refers to a cubic meter at 00C and pressure of 1,013 milibars under dry conditions.

SO₂ (emission level per power plant site):

0.2 Tonne/day/MWe (first 500 MWe)
0.1 Tonne/day/MWe (each additional MWe >500 MWe)

Maximum SO₂ discharge per power plant site: 500 tpd
Maximum level of SO₂ in the flue gases: 2,000 mg/Nm3

NO_x (as NO₂):

Steam Power Plants (each unit)

Gas fuel- 320 mg/Nm₃ (3% oxygen); 86 ng/j; 155 ppm; .20 lb/million BTU
Oil fuel- 460 mg/Nm₃ (3% oxygen); 130 ng/j; 225 ppm; .30 lb/million BTU
Coal- 750 mg/Nm₃ (6% oxygen); 260 ng/j; 365 ppm; .60 lb/million BTU

Combustion Turbine Plants

Gas fuel- 125 mg/Nm₃ (dry at 15% oxygen); 86 ng/j or .20 lb/million BTU
Diesel fuel- 165 mg/Nm₃ (dry at 15% oxygen); 134 ng/j or .31 lb/million BTU
Fuel oil (#6)- 300 mg/Nm₃ (dry at 15% oxygen); 245 ng/j or .57 lb/million BTU

Engine Driven Plants - 2,000mg/Nm₃ (dry at 15% oxygen) or 13 grams/kWh

AMBIENT AIR QUALITY: EIAs required in conjunction with new thermal power plant units greater than 300 MWt (~140 MWe) should contain air-modeling studies that take into account existing air quality data to assess the quantitative impact of the new plant on the airshed* of the area. For plants under 300 MWt, depending on the plant location, Ex-Im Bank may require that air quality modeling be conducted to ascertain the level of the ambient air quality. The aggregate level of emissions from the new thermal plant and existing plant units or other sources within the zone of influence of the new plant shall not exceed the maximum ambient air quality standards required by the host country or the values set forth below:

*Unless defined by local legislation, the airshed refers to the local areas around the plant whose ambient air quality is directly influenced by the plant emissions.

EX-IM BANK AIR EMISSION INCENTIVES:
For combustion turbine plants, if additional investment in U.S. equipment is made that reduces NO_x emissions to or below the incentive level of 0.10 lb/million BTU in the case of gas fuel, and 0.23 lb/million BTU for liquid fossil fuel, or if coal gasification is used to provide fuel, Ex-Im Bank will provide financial support under the Environmental Exports Program (EEP) for its portion of the entire project. (See Annex E)

For coal-fired plants, Ex-Im Bank will provide support under the EEP for its portion of the project if SO₂ emissions <.06 Tonnes per day/MWe, or if 98% SO₂ removal is achieved.

WATER QUALITY
LIQUID EFFLUENTS - Process wastewater, cooling water, boiler blowdown, domestic sewage and contaminated storm water should be treated to meet the following specified limits before being discharged to surface waters. Reduction in the generation of effluents through process modifications and recycling is recommended.

A mixing zone is a limited area or volume of water where initial dilution of a discharge takes place and beyond which applicable water quality criteria should not be exceeded. In the case of a thermal plume, a mixing zone is generally defined as occupying no more than 25% of the cross section of a waterway channel (river, stream, etc.) so as to allow passage of aquatic life and permit other uses of the water. In the case of an open body of water, the mixing zone will be defined on a case-by-case basis taking into account the existing ecology and in particular, the presence of coral reefs. Where zone is not defined, 100m from the point of discharge is used.

Liquid effluent discharges to a public or private central wastewater treatment system may be subject to pre-treatment requirements. Measures should be taken to prevent potential groundwater contamination from discharges containing toxic hydrocarbons. For projects potentially causing erosion and sedimentation impacts in receiving waters, a plan should be submitted incorporating measures to mitigate the impacts on water quality and aquatic life.

SOLID AND LIQUID NON-HAZARDOUS WASTES
Applicants should provide a waste management plan that incorporates environmentally safe waste management and disposal practices. Recycling or reclamation of materials is encouraged where possible. If recycling or reclamation is not practical, wastes must be disposed of in an environmentally safe manner that incorporates best management practices, as well as in compliance with applicable local laws and regulations.

HAZARDOUS AND TOXIC MATERIALS AND WASTES
Projects that include the handling, storage, treatment and disposal of hazardous materials must include a management plan for those materials which contain the following elements:

• Existing equipment and systems utilizing PCBs or CFCs should be phased-out and disposed of in a manner consistent with the requirements of the host country and in accord with the recommendations set forth in the PPAH ("Industrial Management of Hazardous Wastes".)
• Storage and liquid impoundment areas for fuels, raw and in-process materials, solvents, wastes, and finished products should be designed with secondary containment or liners, where required, to prevent the contamination of soil, groundwater and surface waters.
• Maintenance of all hazardous materials in clearly labeled containers or vessels
• Storage and handling of all hazardous materials appropriate to their hazard characteristics: reactivity; flammability; corrosivity; radioactivity; and toxicity
• Fire prevention systems and secondary containment for storage facilities, where required, to prevent fires or the release of hazardous materials to the environment
• Hazardous wastes must be treated and disposed of in a manner to prevent the contamination of soil, groundwater and surface waters and to avoid the release of toxic substances in the environment.
• Ash disposal areas should be designed and engineered so as to provide a liner and capping systems (natural or synthetic or a combination) consistent with permeability levels necessary to protect water resources (groundwater and surface waters).
• A suitable remediation plan will be developed to address the clean-up, as necessary, of contamination on soil and water as appropriate, for the specific site conditions.

NOISE
The Project boundary or fence line is the commonly accepted location for evaluating Project related noise impacts, although the outer edge of a buffer zone or other uninhabited area may be appropriate in selected cases.

AMBIENT NOISE: Steady-state noise levels from the Project's operation, measured at noise receptors located outside the Project property boundary, should not exceed the follow ing limits:

RESETTLEMENT, INDIGENOUS PEOPLES, CULTURAL PROPERTY (When Applicable)
Project site selection should take into account and minimize to the extent practical adverse impacts to indigenous and other vulnerable people within the project's area of influence resulting from involuntary resettlement, land use changes, population influx due to increased access caused by the project, or effects on culturally significant artifacts or sites.

Where large resettlement or relocation becomes unavoidable, a Resettlement Action Plan (RAP) must be developed and implemented in compliance with host-country laws and international guidelines such as those of the World Bank Group. (See Operational Safeguard Policies of the World Bank: OP 4.20, Indigenous Peoples; OP 4.11, Safeguarding Cultural Property and OD 4.30, Involuntary Resettlement).

NATURAL HABITATS (When Applicable)
Project site selection should take into account and minimize to the extent practical impacts to the ecology within the project's area of influence. Care to avoid/minimize impacts should be demonstrated, particularly in the case of important and critical natural habitats as defined in World Bank Operational Policy 4.04; Natural Habitats. For projects situated in sensitive locations, the EIA should address the risk of direct and indirect impacts on the environment of the project's area of influence as well as measures to mitigate these impacts. Guidance in protecting natural habitats is provided in OP 4.04.

ENVIRONMENTAL MANAGEMENT AND MONITORING (When Applicable)
For Category A projects, an environmental management and monitoring plan (EMP), as described in Annex E, should be provided that sets forth: (a) the measures to be taken during the implementation and operation of a project to eliminate or offset adverse environmental impacts, or reduce them to acceptable levels; (b) the actions needed to implement these measures; and (c) actions required to assess the effectiveness of the mitigation measures employed. Specific requirements of the EMP will be made on a case-by-case basis according to the project's environmental sensitivities. The World Bank Operational Policy 4.01 provides guidance with respect to the preparation of an EMP.