Environmental and Social Management Plan for Luoyang Langchao Fire Technology Co., Ltd. Reduction and Phase-out of PFOS in Priority Sectors in China Environmental and Social Management Plan December 29, 2021 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China [Leave for Blank] Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Contents 1. INTRODUCTION ....................................................................................................... 1 1.1 BACKGROUND .............................................................................................................1 1.2 METHODOLOGY ...........................................................................................................2 1.3 REPORT STRUCTURE.....................................................................................................2 2. ENVIRONMENTAL AND SOCIAL SAFEGUARD POLICIES............................................... 4 3. SITE INTRODUCTION ................................................................................................ 8 3.1 BASIC INFORMATION ...................................................................................................8 3.1.1 Site Location .................................................................................................................................8 3.1.2 Project Building Situation ..........................................................................................................10 3.1.3 Site History ..................................................................................................................................11 3.2 PROUCTION PROCESS ................................................................................................ 12 3.2.1 Production Process Flow of Water-based Foam Fire Extinguishing Agent Products ......13 3.2.2 Process Flow of Alcohol-resistant Foam Fire Extinguishing Agent ....................................13 3.2.3 Raw Materials .............................................................................................................................15 4. PROJECT BACKGROUND ......................................................................................... 16 4.1 ENVIRONMENTAL BASELINE ....................................................................................... 16 4.1.1 Geography and Climate ............................................................................................................16 4.1.2 Ambient Air Quality ....................................................................................................................16 4.1.3 Surface Water Environmental Quality .....................................................................................17 4.1.4 Groundwater Environmental Quality ........................................................................................18 4.1.5 Acoustic Environmental Quality ...............................................................................................19 4.2 ECOLOGICAL BASELINE ............................................................................................... 19 4.3 SOCIOECONOMIC BASELINE ....................................................................................... 19 4.3.1 Population ....................................................................................................................................19 4.3.2 Economy and Income ................................................................................................................21 4.3.3 Human Resource........................................................................................................................22 5. ENVIRONMENTAL AND SOCIAL AUDIT .................................................................... 24 5.1 ENVIRONMENTAL AUDIT ............................................................................................ 24 5.2 OCUPATIONAL HEALTH AND SAFETY AUDIT ................................................................ 29 5.3 SAFETY AUDIT ............................................................................................................ 30 5.4 SOCIAL AUDIT ............................................................................................................ 33 5.5 MANAGEMENT SYSTEM AND MECHANISM ................................................................. 36 5.6 FINDINGS AND CORRECTIVE PLAN .............................................................................. 40 i Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 6. PILOT PROJECT ACTIVITIES ..................................................................................... 43 7. MANAGEMENT ORGANIZATION SETTING ............................................................... 47 8. PILOT PROJECT E&S IMPACT ASSESSMENT .............................................................. 49 8.1 ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT ................................................. 49 8.2 ENVIRONMENTAL AND SOCIAL MONITORING PLAN .................................................... 59 8.3 CAPACITY BUILDING ................................................................................................... 61 9. STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE ............................. 63 9.1 OBJECTIVES................................................................................................................ 63 9.2 ENGAGEMENT PROCESS AND FINDINGS ..................................................................... 63 9.3 PUBLIC ENGAGEMENT AND INFORMATION DISCLOSURE IN THE NEXT PHASE .............. 66 9.4 COMMUNITY GRIEVANCE REDRESSING MECHANISM .................................................. 66 9.5 REPORTING MECHANISM ........................................................................................... 69 10. ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN .......................................... 70 11. COST ESTIMATION .............................................................................................. 78 12. ANNEX ............................................................................................................... 79 Annex 1: List of Consulted Personnel ..................................................................................... 79 Annex 2: Land Certificate....................................................................................................... 80 Annex 3: Land Lease Agreement ............................................................................................ 81 Annex 4: Drinking Water Quality Test Report ......................................................................... 83 Annex 5: Letter of Commitment ............................................................................................ 86 Annex 6: Document List......................................................................................................... 87 Annex 7: Photolog ................................................................................................................. 88 ii Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China TABLES Table 3-1:Sensitive Points around the Project Area .............................................................. 9 Table 3-2: Relevant Buildings and Facilities within the pilot project area ..........................11 Table 3-3: Project History .......................................................................................................11 Table 3-4: List of Main Raw Materials ....................................................................................15 Table 4-1: Total Population and Population Density in 2019 ...............................................20 Table 4-2: Comparison of GDP and Industrial Structure in 2020 .........................................21 Table 5-1: Implementation Plan of Emergency Environmental Response Plan..................24 Table 5-2: Wastewater Testing Results .................................................................................25 Table 5-3:Exhaust Pollutant Organized Emission Test Results ..........................................26 Table 5-4: Exhaust Pollutant Unorganized Emission Test Results. ....................................26 Table 5-5: Noise Test Results ................................................................................................27 Table5-6:Implementation Plan of Occupational Health Status Evaluation and Occupational Hazard Factor Detection ...................................................................30 Table5-7:Emergency Implementation Plan of Production Safety ........................................31 Table5-8:Luoyang Langchao Fire Technology Corrective Plan for Fire Completion Acceptance ...............................................................................................................32 Table 5-9:Findings ..................................................................................................................40 Table 6-1:Diagram of Project Schedule .................................................................................43 Table 6-2:List of production facility to be updated ...............................................................45 Table 8-1:The Alternative Formula Identified in This Pilot Project ......................................49 Table 8-2:Potential E&S Impacts and Mitigation Measures in Alternative Formula R&D and Performance Testing Stage......................................................................51 Table 8-3:Potential E&S Impacts and Mitigation Measures During the Equipment Removal and Replacement ......................................................................................54 Table 8-4:E&S Monitoring Plan ..............................................................................................59 Table 8-5:Capacity Building and Training Plan.....................................................................61 Table 9-1:Consultation Conclusion with the Stakeholders ..................................................64 Table 9-2:Report Submission Plan ........................................................................................69 Table 10-1:Environmental and Social Management Plan .....................................................70 Table 11-1:Budget List of the Pilot Project ...........................................................................78 i Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China FIGURES Figure 3-1:The Project Location.............................................................................................. 8 Figure 3-2: Site Vicinity Map ................................................................................................... 9 Figure 3-3: Site Layout ...........................................................................................................10 Figure 3-4:Process Flow Chart...............................................................................................12 Figure 4-1: Social and Economic Overview in 2020 ............................................................22 Figure 4-22: Number of employees in Luoyang City in recent years (ten thousand people).......................................................................................................................23 Figure 5-1: Diagram of Main OHS Risks in the Process Flow of Yibin Branch ...................29 Figure 6-1:Diagram of the project technical route ................................................................44 Figure 7-1:Schematic Diagram of the System Structure of the Project Management Agencies ...................................................................................................................48 Figure 9-1:The First Round of Online Publicity Screenshots ..............................................66 Figure 9-2:Flow Chart of the GRM for PFOS Project ............................................................68 ii Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Abbreviations and Acronyms BAT Best Accessible Technology BEP Best Environmental Practice CCCF China Certification Center for Fire Product of the Ministry of Emergency Management COD Chemical Oxygen Demand EIA Environmental Impact Assessment ESIA Environmental and Social Impact Assessment ESMP Environmental and Social Management Plan FECO the Foreign Environmental Cooperation Center GDP Gross Domestic Product GEF Global Environmental Facility GRM Grievance Redressing Mechanism PFOS Perfluorooctane Sulphonate PFOSF Perfluorooctane Sulfonyl Fluoride PPE Personal Protective Equipment OHS Occupational Health and Safety WB the World Bank iii Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 1. INTRODUCTION 1.1 BACKGROUND In August 2013, the Standing Committee of the National People's Congress approved the Amendment to Annex A, Annex B and Annex C of the Stockholm Convention on Persistent Organic Pollutants (hereinafter referred to as "the Stockholm Convention"), which lists nine new Persistent Organic Pollutants, and the Amendment to Annex A, which lists endosulfan. On 25 March 2014, the Ministry of Ecology and Environment with other eleven ministries jointly issued a notice banning the production, distribution, use, import and export of perfluorooctane sulphonate and its salts (PFOS) and perfluorooctane sulfonyl fluoride (PFOSF), except for specific exemptions and acceptable purposes. China shall phase out the use of six specific exempt uses of PFOS by the end of the specific exemption period (25 March 2019) as required by the amendment, and gradually implement best available techniques and best environmental practices in the industries with the seven acceptable uses of PFOS, to gradually achieve the reduction and phase-out of PFOS. PFOS is stable in the environment, minimal volatility, neither hydrolytic nor photolytic nor biodegradable under natural conditions. It is highly bio accumulative and ubiquitous worldwide. PFOS is toxic to reproduction, mutagenicity, and development, and is a class of environmental pollutants with systemic and multi-organ toxicity. To reduce environmental pollution and fulfil national conventions, the Foreign Environmental Cooperation Center (FECO) of the China Ministry of Ecology and Environment and the World Bank (WB) have jointly developed the "Global Environmental Facility (GEF)-Reduction and Phase-out of PFOS in Priority Sectors in China" since 2015. In 2021, FECO and WB decided to conduct an environmental and social assessment of its PFOS-related production lines at Luoyang Langchao Fire Technology Co., Ltd, (hereafter refers to Langchao Fire Technology) and to promote and support the elimination of PFOS in production activities by offering grants. Established in 1954, Luoyang Langchao Fire Technology Co., Ltd. switched its production to fire extinguishing agents in 1970, The original name was "Luoyang Laocheng Fire Agent Factory" located at No. 208, East Jiudu Road, Laocheng District, Luoyang City, Henan Province. In 1991, it was renamed to "Luoyang Langchao Fire Agent Co., Ltd", and in 2011, it was renamed to "Luoyang Langchao Fire Technology Co., Ltd." ("Langchao Fire Technology" or "Headquarters"). According to management personnel, the headquarters has no production activities, and only retains some management and sales positions, which are responsible for branch management, as well as marketing and business work. According to the desktop survey and management personnel consultations, Langchao Fire Technology involves a total of nine subsidiaries, namely the Yibin Branch, Luoyang Risheng Fire Technology Co., Ltd, Henan Langchao Construction Engineering Co., Ltd, Luoyang Langchao Industrial Developing Co., Ltd, Henan Langchao Safety Technology Co., Ltd, Hami Langchao Fire Technology Co. Ltd., Henan Langchao Fire Engineering Co., Ltd., Henan Langchao Fire Research Institute Co., Ltd., and Shanghai Hongqi Fire Technology Co., Ltd. Among them, the 1 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 10 PFOS-related foam fire extinguishing agent production lines and public facilities of the Yibin branch are involved in this proposed PFOS reduction and phase-out project (this pilot project). Established in 2014, the Yibin Branch is called "Luoyang Langchao Fire Technology Co., Ltd Yibin Branch", located in the southwest of Xihan Village, Zhuge Town, Yibin District, Luoyang City, Henan Province, covering an area of 13,806 square meters (20.7 acres) in industrial land. The Yibin branch is responsible for receiving orders from headquarters and producing and shipping. The industry category belongs to specialized chemical product manufacturing. At present, the main businesses include research and development of fire chemicals, sales and maintenance of fire equipment, fire engineering and personal fire protection equipment. The designed production capacity of foam fire extinguishing agent is 8,500 tons per year, and the actual production capacity is about 5,000 tons per year. This Environmental and Social Management Plan (ESMP) assessment was conducted only for the existing PFOS-related foam fire extinguishing agent production lines and public facilities audit of the Yibin Branch, and the existing environmental and social management system of the headquarters and make the environmental and social impact assessment (ESIA) of this pilot project. From July to August 2021, Stantec Environmental Engineering (Shanghai) Co., Ltd (Stantec) was assigned to conduct the environmental and social assessment of this pilot project and the ESMP (the "Report") was prepared accordingly. 1.2 METHODOLOGY The following methods were used by Stantec for this assignment: • Review of relevant documents, including (1) environmental impact assessment (EIA) document; (2) headquarters environmental and social management system documents (the Yibin Branch continued to use headquarters management procedures and branch- level management procedure was not established); (3) relevant social licensing documents (such as land acquisition impacts), and (4) other environmental and social- related documents and records; • Online public information research; • On-site visits to the pilot project and surrounding areas; • Project stakeholder consultation. These stakeholders include Zhuge Town People’s Government, Zhuge Town Environmental Protection Office, Zhuge Town Land and Resources Office, Xihan Village Committee and affected lease holders in Xihan Village. A list of stakeholder consultation can be found in Appendix A. 1.3 REPORT STRUCTURE The remaining sections of this report are: • Section 2: Environmental and Social Safeguard Policy; • Section 3: Site Introduction; 2 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China • Section 4: Project Background; • Section 5: Environmental and Social Audit; • Section 6: Pilot Project Activities; • Section 7: Management Organization Setting; • Section 8: Pilot Project E&S Impact Assessment • Section 9: Stakeholder Engagement and Information Disclosure; • Section 10: Environmental and Social Management Plan; • Section 11: Cost Estimation; • Section 12: Annex. 3 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 2. ENVIRONMENTAL AND SOCIAL SAFEGUARD POLICIES The applicable environmental and social safeguard policies of WB are listed as follows: Table 2-1: Applicable Environmental and Social Safeguard Policies of the World Bank Relevance Relevance of the Safeguard of the Sub-Project (the Note Policy Parent Pilot Project) Project The project activities include raw material replacement, experiments, equipment replacement, product trial Environmental production and production activities, which will have an Assessment Triggered Triggered impact on the environment. The project will prepare this (OP/BP 4.01) environmental management plan to control the environmental risks in the process of equipment removal. Both parent project and the pilot project does not involve Natural Habitats Not Not Triggered natural habitats and nature reserves at all levels, nor does (OP/BP 4.04) Triggered it carry out construction in nature reserves. The parent project triggers the OP 4.09, according to the Pest Environmental and Social Management Framework Management Triggered Not Triggered (ESMF). However, the pilot project does not involve the (OP 4.09) manufacture, use, purchase, and treatment of pesticides, so the pilot project dose not trigger OP 4.09. The parent project doesn’t trigger the OP 4.10, according Indigenous Not Not Triggered to the ESMF. This pilot project is not located in an ethnic People (OP 4.10) Triggered minority settlement and does not trigger the WB's OP 4.10. The parent project doesn’t trigger the OP 4.11, according Physical Cultural to the ESMF. This pilot project does not involve material Not Resources (OP Not Triggered and cultural resources, and will not select sites that affect Triggered 4.11) archaeological, paleontological, and historical values to carry out activities. Involuntary The parent project triggers the OP/BP 4.12, according to Resettlement Triggered Not Triggered the ESMF. However, the construction of this pilot project (OP/BP 4.12) does not involve land acquisition and demolition. The parent project doesn’t trigger the OP 4.36, according Forestry (OP Not Not Triggered to the ESMF. This pilot project does not involve commercial 4.36) Triggered logging and does not involve virgin forest. Both parent project and the pilot project does not involve Safety of Dams Not supporting the construction and rehabilitation of dams, nor (OP/BP4.37) Triggered Not Triggered will it rely on existing dams or dams under construction on the mission. Projects on International Not Both parent project and the pilot project does not involve Waterways Triggered Not Triggered international rivers. (OP/BP7.50) Projects in Not Both parent project and the pilot project does not involve Disputed Areas Not Triggered Triggered disputed areas. (OP/BP7.60) 4 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Relevance Relevance of the Safeguard of the Sub-Project (the Note Policy Parent Pilot Project) Project World Bank Both parent and the pilot project will carry out at least 2 Policy on Access Triggered Triggered rounds of information disclosure and public participation to Information following the World Bank’s policies. The WB General EHS Guideline has been referred. Domestic environmental and social laws and regulations applicable to this report are listed in Table 2 1. Table 2 1: Environmental and Social Laws and Regulations. Title Effective Date General Law on Environmental Impact Assessment 2018 Law on Environmental Protection 2015 Management Regulations for Environmental Protection for Construction Projects 2017 Classification Method for Environmental Accident Risk of Enterprise 2018 Notice of the State Council on Issuing the "Thirteenth Five-Year" Ecological Environment Protection Plan 2016 Notice of the State Council on Issuing the Three-Year Action Plan for Winning the Blue-Sky Defence War 2018 Notice on Further Strengthening the Management of EIA and Preventing Environmental Risks 2012 Notice on Issuing the List of Significant Changes in Construction Projects of Some Industries in the Management of EIA 2015 Notice on the Issue the "Thirteenth Five-Year" EIA Reform Implementation Plan 2016 Notice on Job Handover of EIA System and Pollution Discharge Permit System 2017 Notice on Strengthening Risk Prevention and Strict EIA Management 2012 Technical Guideline for Environmental Impact Assessment of Construction Project - General Program 2017 Regulations of Henan Province on Environmental Protection of Construction Projects 2016 Notice of the Department of Housing and Urban-Rural Development of Henan Province on Issuing the Implementation Plan for the Prevention and Control of Air, Water, and Soil 2020 Pollution in Henan Province in 2020 Air pollution control Integrated Emission Standards for Atmospheric Pollutants 1996 5 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Title Effective Date Comprehensive Emission Standard of Air Pollutants 2018 Notice of the Ministry of Ecology and Environment on the Release of Sample Emission Permit Undertaking, Emission Permit Application Form and Emission Permit Format 2018 Notice on the Issuance of the "Thirteenth Five-Year Plan" for the Prevention and Control of Volatile Organic Compounds Pollution 2017 Emission Standards for Odorous Pollutants 1993 Standard for Catering Service Air Pollutant Emission 2018 Pollution Control Standards for Hazardous Waste Incineration 2001 Emission Standards for Volatile Organic Compounds from Industrial Painting Processes 2020 Regulations of Henan Province on the Prevention and Control of Air Pollution 2018 Regulations of Henan Province on Reducing Pollutant Discharge 2014 Regulations of Luoyang on the Prevention and Control of Air Pollution 2020 Water resource protection Environmental Quality Standard for Surface Water 2002 Standard for Groundwater Quality 2017 Law on Water 2016 Law on Water Pollution Prevention and Control 2017 Measures on Water Abstraction Permit Management 2008 Integrated Wastewater Discharge Standard 1996 Technical Guidelines for Environmental Impact Assessment Groundwater Environment 2016 Urban Wastewater Recycling - Water Quality Standard for Industrial Use 2005 Notice of the General Office of the People's Government of Henan Province on Issuing the Division of Centralized Drinking Water Source Protection in Towns and Villages in Henan 2016 Province Regulations of Henan Province on the Prevention and Control of Water Pollution 2019 Regulations of Luoyang City on the Protection of Drinking Water Sources in Luhun Reservoir 2020 Noise Emissions prevention Law on the Prevention and Control of Pollution of Environmental Noise 2018 Emission Standard of Environment Noise for Boundary of Construction Site 2012 Standard for Noise at the Boundary of Industrial Enterprises 2008 Waste Management and Disposal 6 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Title Effective Date Law on the Prevention and Control of Environmental Pollution by Solid Waste 2020 Standard for Pollution Control on Industrial Solid Waste Storage 2013 Standard for Pollution Control on Hazardous Waste Storage 2013 Standard for Pollution Control on the Hazardous Waste Landfill 2020 National Catalogue of Hazardous Wastes 2021 Management Regulation for Hazardous Waste Transfer Manifests 1999 Regulations of Henan Province on the Prevention and Control of Environmental Pollution by Solid Waste 2012 Occupational Health Law on Occupational Disease Prevention and Control 2018 List of Occupational Disease Hazards Risk Categories for Construction Projects 2021 Regulations on the Management of Occupational Health in the Workplace 2021 Technical Specification for Occupational Health Monitoring 2014 Safety Law on Production Safety 2021 Measures for Supervision and Management of "Three Simultaneous" Safety Facilities in Construction Projects 2015 Measures for the Management of Safety Production Emergency Plans 2019 Law on Fire Protection 2021 Code for Fire Protection Design of Building 2018 Code for Design of Extinguisher Distribution in Building 2005 Supervision and management regulations for firefighting products 2013 Labor Labor Law 2018 Labor Contract Law 2012 7 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 3. SITE INTRODUCTION 3.1 BASIC INFORMATION 3.1.1 Site Location The Yibin Branch is located at the southwest of Xihan Village, Zhuge Town, Yibin District, Luoyang City, Henan Province (see Figure 3-1), covering an area of 13,806 square meters (approximately 20.7 mu). At present, the nature of the land belongs to rural collective construction land. Langchao Fire Technology has signed a land lease agreement with Xihan Village and has obtained a land use certificate for collective construction land (see chapter 5.4.1 for details of the land use). Figure 3-1:The Project Location The surrounding situation of the Yibin Branch is shown in Figure 3-2. As shown in the figure, the surrounding conditions of the Yibin Branch are as follows: • Western boundary: Duleyuan Hotel and Luoyang Qiangrong Glass Mirror Co., Ltd.; • Eastern boundary: close to Luoyang Longmen Glass Group and Gulongxuan Hotel; • North boundary: Gulong Road, 120m northeast of Gulong Road is Xihan Village; 8 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China • South boundary: close to Luoyang Longmen Glass Group. Figure 3-2: Site Vicinity Map See Table 3-1 for the environmental sensitive points within 500 meters of the Yibin Branch (the conventional distance of China's environmental impact assessment). Table 3-1:Sensitive Points around the Project Area Closest No. Protection Target Type Direction Distance(m) Dining 1 Duleyuan hotel West�?north Nearby accommodation Dining 2 Gulongxuan hotel East Nearby accommodation 3 Xihan village Village Northeast 120 m 4 Pei village Village Northwest 300 m Agricultural irrigation 5 Yidong canal North 50 m canal 9 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 3.1.2 Project Building Situation The Yibin Branch factory area is composed of production workshops, finished product warehouses, packaging barrel warehouses, office buildings, dormitories, laboratories, etc. The whole plant of the Yibin Branch is arranged with the office area on the north side of the plant area, the production area on the south side of the plant area, the finished product warehouse, and the packaging barrel warehouse at the southeast corner of the plant area, and the dormitory on the east side of the plant area. The southwest area adjacent to the warehouse of waste drums and bags is the auxiliary facilities area, where a sewage treatment station is mainly installed. The layout of the Yibin Branch factory area is shown in Figure 3-3. Figure 3-3: Site Layout The pilot project is to implement the Stockholm Convention in China, carry out the Best Accessible Technology/Best Environmental Practice (BAT/BEP), and promote the reduction and phase-out of PFOS in the fire industry eventually. The goal of this pilot project is to develop PFOS-free foam extinguishing agent, and to trial-produce and test PFOS-free foam fire extinguishing products, and gradually achieve the replacement of PFOS-containing fire extinguishing products. The main tasks of the pilot project consist of: 10 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China • Research and development of the PFOS-free foam fire extinguishing agents. • Replacement of production equipment and trial production. • Quality control of the trail production. • Testing and evaluation by third parties. • Fire extinguishing experiments. • Replacement of the PFOS-containing foam fire extinguishing products. • Promotion of PFOS-free products. • Closure of the pilot project. See Table 3-2 for details of this pilot project and related buildings and facilities: Table 3-2: Relevant Buildings and Facilities within the pilot project area No. Building Structure Area (m2) Synthetic foam project production and raw material, 1 Steel structure 1,350 finished product workshop 2 Finished product warehouse Brick and concrete 835.36 3 Packing barrel warehouse Brick and concrete 1,023.8 4 Laboratory Brick and concrete 400 5 Sewage station Brick and concrete 300 This pilot project does not involve large-scale construction activities, only the replacement of production and testing equipment, and all activities are carried out within the building, which has a small impact on the surrounding environment. The project area is mainly for synthetic foam project production and raw materials, finished product workshops, and laboratories. The project affected area includes all the above-mentioned buildings. 3.1.3 Site History The historical situation of Langchao Fire Technology is shown in Table 3-3. Table 3-3: Project History Year Activities Luoyang Laocheng Fire Agent Factory was established, located at No. 208, East Jiudu Road, 1954 Laocheng District, Luoyang City 1970 Converted to fire extinguishing agent 1991 Renamed to “Luoyang Langchao Fire-fighting Agent Co., Ltd." The production department moved to its current address, which was on the southwest side of Xihan Village, Zhuge Town, Yibin District, Luoyang City, covering an area of 20.7 acres and 2010 obtaining a collective land use certificate. The address in the Laocheng District was only reserved for the management department, and no production was carried out. 11 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Year Activities 2011 Renamed to “Luoyang Langchao Fire Technology Co., Ltd." "Luoyang Langchao Fire Technology Co., Ltd. Yibin Branch" was established at the same address 2014 in Xihan Village, Zhuge Town. Yibin branch is mainly responsible for production, and Langchao Fire Technology Co., Ltd. is mainly responsible for management and business sales. 3.2 PROUCTION PROCESS The Yibin Branch has 10 foam fire extinguishing agent production lines, designed to produce 8,500 tons of compound and sub-packed foam fire extinguishing agents per year. The current actual production capacity is about 5,000 tons per year. The Yibin Branch currently produces six types of foam fire extinguishing agents, namely aqueous film-forming foam fire extinguishing agent (designed production capacity is 1500 tons/year, actual production capacity is about 880 tons/year), and medium double foam fire extinguishing agent (designed production capacity is 1,500 tons/year, actual production capacity is about 880 tons/year), high-expansion foam fire extinguishing agent (designed production capacity is 1,500 tons/year, actual production capacity is about 880 tons/year), anti-solvent aqueous film-forming foam fire extinguishing agent (designed production capacity is 1,500 tons/year, actual production capacity is about 880 tons/year), alcohol-resistant foam fire extinguishing agent (designed production capacity is 1,000 tons/year, actual production capacity is about 600 tons/year) and alcohol-resistant fluoroprotein foam fire extinguishing agent (designed production capacity is 1,500 tons/year, actual production capacity is about 880 tons/year ), two of the foam fire extinguishing agents (water film-forming foam fire extinguishing agent and solvent-resistant aqueous film-forming foam fire extinguishing agent) contain PFOS in the production raw materials. Although the remaining four foam fire extinguishing agents do not contain PFOS in the raw materials, they may still contain trace amounts of PFOS in their final products because they share the production line with PFOS-containing products. The production process of the above six foam fire extinguishing agents is the same except for the difference in the feeding and mixing section. The production process is a simple mixing and sub- packaging of multiple raw materials, the whole process is only physical without chemical reaction and all production processes are normal temperature and pressure. The process flow chart is shown in Figure 3-4. The project currently employs 67 people and implements a one-shift system with 8 hours of work per shift and 300 days of work per year. Figure 3-4:Process Flow Chart In the existing project, the production raw material containing PFOS is the firefighting additive F1212 (a fluorocarbon surfactant), which is used in the mixing process. The addition ratio varies 12 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China according to different foam fire extinguishing agent models, ranging from 1% to 5 %. Fluorocarbon surfactants have been used for a long time, the product quality is stable, and have the effect of reducing the surface tension of the liquid and the film formation, and the fire extinguishing performance are stable, and it is the main material that must be added to the foam fire extinguishing agent at this stage. The main purpose of this pilot project is to replace the fire- fighting aid F1212. 3.2.1 Production Process Flow of Water-based Foam Fire Extinguishing Agent Products The production process flow of Water-based Foam Fire Extinguishing Agent Products is as follows: • Main product types: aqueous film-forming foam fire extinguishing agent, medium expansion foam fire extinguishing agent, high expansion foam fire extinguishing agent • Use high-quality raw materials: water, sodium lauryl sulfate, urea, foaming agent, antifreeze, fluorocarbon surfactant, etc. All raw materials of the Yibin Branch are purchased from outside, and all kinds of raw materials must be inspected when entering the factory, only after passing the inspection can materials be put into storage for later use. • Mixing: add water, antifreeze, stabilizer, flame retardant, blowing agent, solvent, and fluorocarbon surfactant into the mixing tank orderly, and control the stirring speed to 90 rpm and the temperature to room temperature, so that the components are fully dissolved and reacted, and then mixing and stirring for 4 hours. • Finished product: after mixing and stirring for 4 hours, take samples for inspection, weigh, and pack after passing and put the product into storage according to the requirements of the factory inspection procedures. • Packaging, marking, transportation and storage requirements: products that pass the inspection are packaged in anticorrosive iron or plastic barrels, the name, model, mixing ratio, weight, production number, production date, trademark, manufacturer, and simple storage requirements of the water-based fire extinguishing agent must be clearly marked on the packaging barrel. The products should not be mixed with other types of fire extinguishing agents, alcohols, acids, and bases impurities, so as not to affect product quality, and should be stored in a cool and ventilated place, the storage temperature should be less than 45 ℃, the storage period is two years. 3.2.2 Process Flow of Alcohol-resistant Foam Fire Extinguishing Agent The process flow of Alcohol-resistant Foam Fire Extinguishing Agent is as follows: • Main product type: soluble-resistant aqueous film-forming foam fire extinguishing agent, alcohol-resistant foam fire extinguishing agent, alcohol-resistant fluoroprotein foam fire extinguishing agent • Use high-quality raw materials: xanthan gum, fluorocarbon surfactants, foaming agents, ethylene glycol, urea, etc. All raw materials of the Yibin Branch are purchased from outside, 13 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China and all kinds of raw materials must be inspected when entering the factory, only after passing the inspection can materials be put into storage for later use. • Mixing: before production, add the measured water into the reaction tank, then slowly put the xanthan gum into the reaction tank, turn on the mixer while adding the xanthan gum, turn off the mixer after stirring for 2 hours, and soak for 12-24 hours. Accurately measure various raw materials according to the weight percentage specified in the process formula. When the xanthan gum solution has no lumps, add sodium lauryl sulfate, urea, foaming agent, and ethylene glycol into the reaction tank and stir for about 4 hours so that the components are fully dissolved. • Finished product: put the prepared foam liquid into the defoaming tank for defoaming. After defoaming, take a sample for inspection. The inspection standard shall be inspected according to the requirements of the factory inspection regulations. After the index is qualified, it will be packed into barrels and put into storage. • Packaging, marking, transportation and storage requirements: products that pass the inspection are packaged in anticorrosive iron or plastic barrels, the name, model, mixing ratio, weight, production number, production date, trademark, manufacturer, and simple storage requirements of the water-based fire extinguishing agent must be clearly marked on the packaging barrel. The products should not be mixed with other types of fire extinguishing agents, alcohols, acids, and bases impurities, so as not to affect product quality, and should be stored in a cool and ventilated place, the storage temperature should be less than 45 ℃, the storage period is two years. 14 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 3.2.3 Raw Materials All raw materials of the Yibin Branch are purchased. The materials involved are shown in Table 3-4. Table 3-4: List of Main Raw Materials Annual No. Raw Materials Chemical Properties Main Chemical Composition Consumption 8~10 glycosidic alcohol, 1 Foaming agent F801 120 tons General chemicals ethylene glycol Fluorocarbon surfactant Perfluoroalkyl acrylate polymer 2 (firefighting additive 18 tons General chemicals (PFOS), ethylene glycol F1212) Additive F301N Glucose, cellulose, sodium 3 240 tons General chemicals (antifreeze) benzoate 4 Sodium dodecyl sulphate 36 tons General chemicals Sodium dodecyl sulphate 5 EDTA-2 sodium 24 tons General chemicals EDTA-2 sodium D glucopyranose, oligomer, 6 Fchj-50 foaming agent 180 tons General chemicals decyl octyl glycoside 7 Urea 240 tons General chemicals Urea Alkenyl sulfonate, hydroxyalkyl 8 AOS 60 tons General chemicals sulfonate, desulphonated 9 Anionic surfactant 120 tons General chemicals Fatty alcohol sodium sulphate 10 Dodecanal 1.2 tons General chemicals Dodecanal 11 Foaming agent APG0810 120 tons General chemicals Alkyl Glycoside Perfluoroalkyl quaternary 12 Fire-fighting aid YF-138 12 tons General chemicals ammonium iodide 13 Xanthan gum 6 tons General chemicals Xanthan gum Diethylene glycol butyl 14 36 tons General chemicals Diethylene glycol butyl ether ether 15 Foaming agent KLH-30 12 tons General chemicals Cocamidopropyl Betaine 16 Ethylene glycol 120 tons General chemicals Ethylene glycol 17 Hoof shell 360 tons General chemicals / 18 gasoline 600 L Hazardous chemicals / 19 Isopropanol 600 L Hazardous chemicals Isopropanol 15 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 4. PROJECT BACKGROUND The environmental and socio-economic background data of this project use the background data of the Yibin District as priority. If there is no corresponding public information in Yibin District, the public information of Luoyang City, the upper-level administrative division of Yibin District, will be used as a reference. If there is no corresponding public information in Luoyang City, the public data of the higher administrative division of Henan Province shall be consulted. 4.1 ENVIRONMENTAL BASELINE 4.1.1 Geography and Climate Luoyang City is located in the western part of Henan Province, between 111°08’~112°59’ east longitude and 33°35'~35°05' north latitude. It borders Zhengzhou in the east, Sanmen Gorges in the west, the Yellow River and Jiaozuo in the north and Pingding Mountain and Nanyang in the south. Yibin District is located between 112°29'~112°39 east longitude and 34°30'~34°40 north latitude, south of Luoyang City and southwest of Yanshi City, the planning area borders Guanlin Town and Longmen Town, Luolong District, Luoyang City in the west, Wan'an Mountain and Pengpo Town, Yichuan County in the south, and Yi River in the north. Yibin branch is located on the southwest side of Xihan Village, Zhuge Town, Yibin District, Luoyang City. Luoyang City has a warm temperate continental monsoon climate, and the seasonal changes of atmospheric circulation are obvious. The winter is controlled by the polar airflow, and the weather is cold and dry; the summer is affected by the North Pacific subtropical high pressure, the weather is hot and rainy, with an average annual temperature of 14.7℃; the average annual precipitation is 585.2mm, but the distribution during the year is extremely uneven. The precipitation in June to September is about It accounts for 63.5% of the whole year; the annual average relative humidity is 66%; the most frequent wind direction is northeast. 4.1.2 Ambient Air Quality According to the Environmental Quality Bulletin of Luoyang City in 2020, the urban ambient air of Luoyang City in fine particulate matter (PM2.5), respirable particulate matter (PM10), sulfur dioxide, nitrogen dioxide, carbon monoxide 95th percentile concentration and ozone 90th percentile concentrations have all decreased significantly, and the number of good days has increased significantly. The annual average concentration of fine particulate matter (PM2.5) is 51 μg/m3, sulfur dioxide (SO2) is 8 μg/m3, nitrogen dioxide (NO2) is 34 μg/m3, carbon monoxide (CO- 95) is 1.3 mg/m3, and ozone (O3H8-90) is 166 μg/m3. In 2020, the comprehensive index of ambient air quality in Luoyang City was 5.10, which is a decrease of 0.99 compared with 2019, and the air quality has improved. In 2020, the annual average concentration of sulfur dioxide (SO2) reached the national first-level standard limit of ambient air quality (20 μg/m3); the annual average concentration of nitrogen dioxide (NO2) met the national second-level standard limit of ambient air quality (40 μg/m3); the concentration of carbon monoxide (CO-95) reached the national secondary standard limit of ambient air quality (4 mg/m3); the concentration of ozone (O3H8-90) exceeded the national secondary standard limit of ambient air quality (160 μg/m3) 0.04 times; the annual average concentration of inhaled particulate 16 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China matter (PM10) exceeded the national secondary standard limit of ambient air quality (70 μg/m3) by 0.23 times; the annual average concentration of fine particulate matter (PM2.5) exceeded the national secondary standard limit of ambient air quality (35 μg/m3) 0.46 times. Fine particulate matter (PM2.5) is still the main air pollutant in Luoyang City. 4.1.3 Surface Water Environmental Quality According to the Environmental Quality Bulletin of Luoyang City in 2020, there were 12 surface water monitoring sections in 6 major monitoring rivers under the jurisdiction of the city, and the total length of the monitored river sections was 671.2 kilometers. The water quality of Yi River, Luo River and Ru River was excellent, the water quality of Yiluo River was good, and the water quality of Jian River and Chan River was mildly polluted. Compared with 2019, the water quality of the six rivers has not changed significantly, the water quality of the Yi River has improved, and the water quality of the Chan River has slightly decreased. During the "Thirteenth Five-Year Plan" period, the overall water quality of rivers in Luoyang City has improved, the comprehensive pollution index was on a downward trend, the overall water quality of Yi River and Luo River has improved from good to excellent in 2017, and seven surface water state and provincial control monitoring sections have reached three types of water quality one year ahead of schedule, including five sections of two types of water quality and above, accounting for 71.4%. In 2020, the comprehensive water quality class of the 8 centralized underground drinking water sources of the Luonan water source mixed water, Li Lou water source mixed water, Zhangzhuang water source mixed water, Xiachi groundwater well group, Linjian groundwater well group, Wangfuzhuang groundwater well group, Jili District groundwater well group and Dongjiao groundwater well group were all in the third class. Among them, Luonan water source mixed water quality was the second class, the rate of compliance was 100%. The surface water in Yibin District is mainly Yi River, which belongs to the Yellow River basin and the Yiluo River system, there are also a number of irrigation canals, such as the Dongyi Canal, Yidong Canal, Mati Well Branch Canal, Caishigang Branch Canal, etc., with the irrigation area of nearly 40km2, there is also a small first-class Jiuliugou Reservoir, covers an area of 50 acres, reservoir capacity of 2.26 million m3, irrigation area of 2,100 mu; small second-class Zhuge Reservoir. The water body function plan of Yi River in Luoyang City is Class III. Yidong canal is a local agricultural irrigation canal, and water is diverted from the Yi River during the agricultural irrigation period, and there is no water diversion during the monitoring period of the Yibin Branch. Taohuadian reservoir is the largest reservoir in Luoyang City, Yanshi City, it is located at the east of Taohuadian Village, Gaolong Town, 15 kilometers south of Yanshi City, and is located at the junction of Majianhe and Liujian River, a tributary of the Yi River, and is at the junction of Fengshi, Gaolong and Guxian towns. The reservoir mainly consists of dam, main and secondary spillways, two water transmission caverns in the east and west, with a total control basin area of 230 km2, a total reservoir capacity of 18.72 million m3, a normal reservoir capacity of 8.86 million m3, a rainfall collection area of 183 km3, and an elevation of 135m. Taohuadian Reservoir has played an important role in flood control, irrigation, and industrial water supply since its completion. 17 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China The wastewater of the Yibin Branch is treated by the wastewater treatment facilities in the factory and discharged into the Yidong Canal, which eventually flows into the Taohuadian Reservoir. 4.1.4 Groundwater Environmental Quality In 2020, 11 groundwater quality monitoring wells in Luoyang City had a comprehensive water quality of Class II, Class III and Class IV, and the groundwater quality was divided into three classes: excellent, good, and poor. Among them: 1 well reached the second-class excellent level, accounting for 9.09% of the total number of monitored wells; 9 wells reached the third-class good level, accounting for 81.8% of the total number of monitored wells; 1 well reached the fourth-class poor level, accounting for 9.09% of the total number of monitored wells. The comprehensive groundwater score in 2020 was 2.18. Compared with 2019 (2.19), it was slightly lower, and the water quality remained unchanged at good; the geometric mean of bacteriological factors was 2.00, which was the same as 2019 (2.00) and remained at Class I. During the "13th Five-Year Plan" period, the groundwater quality of each well location changed significantly. Among them, the water quality of Zhangzhuang monitoring wells changed from good in 2016 to excellent in 2020; the water quality of monitoring wells of Linjian water source, Wangfuzhuang water source, Lilou water source, Dongjiao water source, Towing Factory and Foreign Language College changed from poor in 2016 to good in 2020. The groundwater in Luoyang City is mainly distributed in the plain area at the edge of Yanluo Depression Basin and the plain area of Luo River and Jian River valley, and the lithology of aquifer in these areas belongs to the sand and gravel layer formed by alluvium of Quaternary Upper Pleistocene to Holocene, and the protection conditions of its air pocket are not uniform, among which in the river floodplain is unfavorable to the protection of groundwater pollution because of the thin thickness of air pocket, lithology particle group and good permeability. At present, water for industrial production and residential use in Luoyang City mainly comes from groundwater, and there are three underground drinking water source pressure stations and nine concentrated groundwater sources. The Yibin Branch is located in the southwest of Xihan Village, Zhuge Town, Yibin District, Luoyang City, and the water of the Yibin Branch is supplied by its own well within the factory. According to the latest water quality monitoring on privately owned wells in 2021, the water quality of the well meets the national standard for drinking water. Detailed testing report are available in Annex 4. It is 21km from Wangfuzhuang water source, 16km from Wulibao water source, 13.5km from Zhangzhuang water source, 10km from Luonan water source, 16km from Linjian water source, 13km from Xiachi water source, 19km from Houli Village water source, 13km from Lilou water source, and 14km from Dongjiao water source. Reportedly the Yibin Branch is not within the protection scope of the groundwater source and the centralized water supply plant in Luoyang area. The drainage from the Yibin Branch meets the first-grade standard of Table 4 of the "Comprehensive Sewage Discharge Standard" (GB8978-1996) and is discharged into Yidong Canal, which eventually flows into Taohuadian Reservoir and does not affect the groundwater source. 18 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 4.1.5 Acoustic Environmental Quality In 2020, the urban area of Luoyang City had a total of 262 noise monitoring points on an 800- meter×800-meter grid, covering an area of 168 square kilometers. The average equivalent sound level of daytime ambient noise in the urban area was 51.9 dB, and the regional acoustic environment noise was Class 2, with an overall evaluation of good. Compared with 2019, it decreased by 0.9 dB, and the acoustic environment quality did not change. The area of urban areas exposed to daytime noise between 50.1 and 55.0 dB and with good environmental quality accounted for 62%, with an affected population of about 1.312 million people; the area exposed to less than 50.0 dB accounted for 22%, with an affected population of about 206,000 people; the area exposed between 55.1 and 60.0 dB accounted for 16%, with an affected population of about 414,000 people. Domestic noise and traffic noise are still the main noise sources. 4.2 ECOLOGICAL BASELINE Luoyang City is rich in wildlife resources. There are more than 290 species of terrestrial vertebrates, including 8 species of amphibians, 22 species of reptiles, more than 120 species of birds, and 42 species of mammals, including salamanders, red-bellied sapsuckers, Sumerian antelopes, money leopards and other national and provincial key animals. There are about 144 families of trees, shrubs, native plants, edible mushrooms, etc. There are more than 2,100 species of plants, including more than 10 species of Lianxiang trees, ginkgo, pearl ginseng, etc. that are protected at the national level, and nearly 30 species of Bashan fir, hemlock, etc. that are protected at the provincial level. The Yibin Branch is located in the southwest of Yibin District, and the plant resources are mainly artificially cultivated food crops, cash crops and vegetables, and the animals are mainly artificially raised domestic animals. According to the survey, there are no rare plant and animal species in the evaluation area. 4.3 SOCIOECONOMIC BASELINE 4.3.1 Population Henan Province is located in the central-eastern part of China and the middle and lower reaches of the Yellow River, bordered by Anhui and Shandong Province to the east, Hebei and Shanxi Province to the north, Shaanxi Province to the west and Hubei Province to the south. As of 2021, the province has 17 prefecture-level cities and one province-administered county-level city, with a total area of 167,000 square kilometers, accounting for 1.73% of the country's total area. Henan Province is one of the most populous provinces in China, with a total population of 109.52 million at the end of 2019 and a population density of 661 people per square kilometer. The resident population is 96.4 million, including 51.29 million urban residents, with an urbanization rate of 53.21%. Luoyang City, a prefecture-level city in Henan Province, is the deputy center city of the Central Plains City Cluster. Luoyang City has a total area of 15,230 square kilometers, including 2,229 19 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China square kilometers of urban area, located in the west of Henan Province, with a length of about 179 kilometers from east to west and a width of about 168 kilometers from north to south. As of March 2021, Luoyang City had 7 counties and 7 districts under its jurisdiction. At the end of 2019, Luoyang City had a total population of 7,170,200 people, with a population density of 470.79 people/km2. As of November 2020, the city's resident population was 7,056,699, of which the urban population was 4,585,300, accounting for 64.98%. Luoyang City is a multi-ethnic place. There are 45 ethnic components in the city, among which the Han population accounts for about 98.8% of the total population of the city, and other ethnic minorities account for about 1.2% of the total population of the city. The distribution of ethnic minorities in Luoyang City is characterized by large dispersion and small clustering, and there are 1 urban ethnic district, 2 ethnic townships (towns) and 24 ethnic villages in the city. Yibin Economic Development Zone (demonstration zone) is located in the southeast of Luoyang City, north to the Luo River, south to the foothills of Wanan Mountain, west to the Erguang Expressway, east to the west border of Yanshigaolong. It has a total area of 280 square kilometers, of which, the central urban area is 52 square kilometers. It has jurisdiction of 5 towns including Zhuge Town, Licun Town, Pangcun Town, Dianzhuang Town, and Koudian Town, with a total of 106 communities. In the 2020 national seventh census, the total population was 360,000, permanent population was 274,700, permanent population urbanization rate was 64.5%. There are a total of 262 permanent ethnic minorities in the region, among which 66 are the Hui ethnic minorities, accounting for 25.2%. According to the results of the main data of the seventh national census published by the National Bureau of Statistics in May 2021, the total population of the country was 141.78 million. According to the results of the main data of the seventh national census in Henan Province, the permanent population of the province was 99,365,519, and the total population of the province was not published. According to the results of the seventh national census of Luoyang City, the permanent population of the city was 7,056,699, and the total population data of Luoyang City was not published. Therefore, it was not possible to obtain the total population data of Henan Province and Luoyang City in 2020. According to the 2020 China Statistical Yearbook and the 2020 Henan Provincial Statistical Yearbook, the total population of China, Henan Province, and Luoyang City in 2019 is shown in Table 4-1. Table 4-1: Total Population and Population Density in 2019 Subject China Henan Province Luoyang City Yibin District Area (square kilometres) 9,600,000 167,000 15,230 280 Population (ten thousand 140,005 10,952 717.02 32 people) Population density 145.8 655 470.79 1,285.7 (person/square kilometres) Data sources: 2020 China Statistical Yearbook, 2020 Henan Provincial Statistical Yearbook, 2019 National Economic and Social Development Statistical Bulletin of Luoyang City, Yibin District Government Website(http://www.hnlykfq.gov.cn/jingkaiqujieshao.html) 20 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 4.3.2 Economy and Income GDP Per Capita Henan Province is a large economic province in China. According to the Statistical Bulletin of National Economic and Social Development of Henan Province in 2020, the annual gross domestic product of the province was CNY 5,499,707 billion, ranking 5th among 31 provinces/autonomous regions/municipalities directly under the central government; the permanent population of Henan Province was 96.4 million, and the per capita gross regional product was CNY 57,051. During the "Thirteenth Five-Year Plan" period, Luoyang's total economic output has exceeded CNY 400 billion and CNY 500 billion, reaching CNY 512.84 billion in 2020, with a year-on-year increase of 3%, the total amount was ranked 45th among cities above prefecture-level, the growth rate of economic indicators continued to be higher than the national average level of the whole province, and ranked first in the province. The permanent population of Luoyang City is CNY 7,056,699, and the per capita GDP of Luoyang City is CNY 72,674. A comparison of gross domestic product (GDP) and industrial structure in 2020 is shown in Table 4-2. Table 4-2: Comparison of GDP and Industrial Structure in 2020 Subject China Henan Province Luoyang City GDP (billion CNY) 1,015,986 54,997.07 5,128.4 GDP per capita (CNY) 72,447 57,051 72,674 GDP growth rate (compared to 2018) 2.3% 1.3% 3% Proportion of primary industry (%) 7.7% 9.7% 5% Proportion of secondary industry (%) 37.8% 41.6% 45% Proportion of tertiary industry (%) 54.5% 48.7% 50% Data source: 2020 National Economic and Social Development Statistical Bulletin of the People's Republic of China, 2020 National Economic and Social Development Statistical Bulletin of Henan Province, 2020 National Economic and Social Development Statistical Bulletin of Luoyang City. Disposable Income Per Capita In 2020, the per capita disposable income of residents in Henan Province was 24,810.10 yuan, of which, the per capita disposable income of urban residents was CNY 34,750.34 and the per capita disposable income of rural residents was CNY 16,107.93. In 2020, the per capita disposable income of residents in Luoyang City was CNY 28,096, with an increase of 3.7%. Among them, the per capita disposable income of urban residents was CNY 39,287, with an increase of 1.7%; the per capita disposable income of rural residents was CNY 15,902, with an increase of 6.2%. 21 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Overall, the economic development level of Luoyang City is relatively low, and the average annual disposable income of urban and rural residents is lower than the national as well as the average level of Henan Province (see Figure 4-1). Overall, the economic development level of Luoyang City is relatively low, and the average annual disposable income of urban and rural residents is lower than the national as well as the average level of Henan Province (see Figure 4-1). Figure 4-1: Social and Economic Overview in 2020 72447 72674 57051 43834 39287 32189 34750.34 28096 24810.1 17131 15902 16107.93 GDP per capita (RMB) Annual disposable Annual per capita Annual per capita income per capita (RMB) disposable income of disposable income of urban residents (RMB) rural residents (RMB) China Henan Province Luoyang City Data source: 2020 National Economic and Social Development Statistical Bulletin of the People's Republic of China, 2020 National Economic and Social Development Statistical Bulletin of Henan Province, 2020 National Economic and Social Development Statistical Bulletin of Luoyang City. 4.3.3 Human Resource In 2019, the number of working populations in Luoyang City was about 4,217,500, of which the number of employees in the primary industry was the largest. In recent years, the number of employees in the secondary industry has been decreasing year by year, and the number of employees in the tertiary industry has been increasing year by year (see Figure 4 2). In 2019, the number of working populations in Luoyang City was about 4,217,500, of which the number of employees in the primary industry was the largest. In recent years, the number of employees in the secondary industry has been decreasing year by year, and the number of employees in the tertiary industry has been increasing year by year (see Figure 4 2). 22 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Figure 4-22: Number of employees in Luoyang City in recent years (ten thousand people) 2019 117.39 123.74 180.62 2018 153.92 131.53 163.17 2017 152.61 140.06 161.46 2016 160.84 135.43 150.21 2015 157.59 134.99 143.23 2014 149.51 139.38 136.44 0 50 100 150 200 250 300 350 400 450 500 Number of employees in Primary industry Number of employees in Secondary industry Number of employees in Tertiary industry Data source: 2015 - 2020 Henan Province Statistical Yearbook 23 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 5. ENVIRONMENTAL AND SOCIAL AUDIT 5.1 ENVIRONMENTAL AUDIT The overall plant and production line of the Yibin Branch has obtained the approval of the environmental assessment report form issued by the Bureau of Land and Environmental Protection of the Management Committee of Luoyang City-Rural Integration Demonstration Zone on February 3, 2016, and completed the completion of environmental protection acceptance and obtained the certificate in March 2016, and the environmental emergency plan was prepared by Yibin Branch in March of the same year. According to the requirements of relevant regulations, Yibin Branch should refer to the "Management Measures for the Record of Emergency Environmental Incident Preparedness Plans of Enterprises and Institutions" (2015) and conduct a retrospective assessment of the environmental emergency preparedness plan at least once every three years. The enterprise has signed a contract with a third-party agency on December 6, 2021, for the preparation of a new emergency response plan for environmental incidents, the implementation plan is shown in Table 5-1 below. Table 5-1: Implementation Plan of Emergency Environmental Response Plan Contents Planned Completion Date Notes The third party completes the preparation of emergency March 2022 environmental incident plans The frequency of drills is based on the text Conduct an environmental training of the emergency plan, and the training time April 2022 and emergency drill is consistent with the next year's training plan The Yibin Branch obtained a water abstraction license in April 2019, valid until March 2022; and conducted a fixed source discharge registration in May 2020, valid until May 2025. The above administrative licenses cover all existing production activities of Luoyang Langchao Technology Yibin Branch. Water Supply and Sewage Disposal The water used by the Yibin Branch includes water for production, domestic use and drinking water for employees. The water used for production, living and canteen at the Yibin Branch is supplied by the well water in the plant, and the annual water intake is 20,000 cubic meters. Employees use bottled water for drinking. The wastewater generated by the Yibin Branch mainly includes wastewater from washing the outer surface of newly purchased drums, wastewater from the workshop floor and laboratory, and domestic sewage. Among them, the wastewater from workshop floor and laboratory, and domestic sewage are treated by "A2 /O + secondary sedimentation tank + filtration" process in the wastewater treatment station in the factory, and the wastewater from washing the outer surface 24 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China of newly purchased drums contains only trace suspended matter and COD, which can be discharged into Yidong canal after mixing with the effluent from the wastewater treatment station, and then enter Taohuadian reservoir. The total discharge volume of production wastewater from the Yibin Branch is 615 cubic meters per year. According to the test results of wastewater from Henan Moore Testing Co., Ltd. on April 14, 2021 (see Table 5-2), the effluent quality meets the requirements of the Class I standard in Table 4 of the Comprehensive Wastewater Discharge Standard (GB8978-1996). The wastewater generated by the Yibin Branch mainly includes wastewater from washing the outer surface of newly purchased drums, wastewater from the workshop floor and laboratory, and domestic sewage. Among them, the wastewater from workshop floor and laboratory, and domestic sewage are treated by "A2 /O + secondary sedimentation tank + filtration" process in the wastewater treatment station in the factory, and the wastewater from washing the outer surface of newly purchased drums contains only trace suspended matter and COD, which can be discharged into Yidong canal after mixing with the effluent from the wastewater treatment station, and then enter Taohuadian reservoir. The total discharge volume of production wastewater from the Yibin Branch is 615 cubic meters per year. According to the test results of wastewater from Henan Moore Testing Co., Ltd. on April 14, 2021 (see Table 5-2), the effluent quality meets the requirements of the Class I standard in Table 4 of the Comprehensive Wastewater Discharge Standard (GB8978-1996). Table 5-2: Wastewater Testing Results Test GB8978 Table 4 Date Item Value Compliance point Class I standard Flow Rat (m3/h) 0.92 / √ pH 7.51 6~9 √ SS (mg/L) 8 70 √ Discharge COD (mg/L) 13 100 √ 2021.4.9 Outlet NH3-N (mg/L) 0.117 15 √ Petroleum (mg/L) 0.06L* 5 √ Colorless, √ Appearance (mg/L) / slightly turbid *: / means not detected. In addition, according to the EIA and its approval, the discharge index of wastewater pollutants from the Yibin Branch is 0.034 tons per year of chemical oxygen demand and 0.004 tons per year of NH3-N. The design capacity of wastewater treatment station is 5 cubic meters per day, and the actual pollutant discharge of the enterprise can meet this discharge indicator according to the wastewater testing concentration. Air Emission 25 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China The main sources of organized air emissions from the Yibin Branch are workshop exhaust (dust and ammonia) and canteen oil smoke. The production waste gas treatment process of the Yibin Branch uses air collector and water adsorption facilities and is discharged through a 15-meter exhaust pipe. Canteen fumes are treated by high-efficiency fume removal devices and then discharged through a 15-meter-high exhaust pipe. According to the test results of organized emissions from Henan Moore Testing Co., Ltd. on April 14, 2021 (see Table 5-3), the dust monitoring results meet the requirements of the secondary standard of Table 2 of the Comprehensive Emission Standard for Air Pollutants (GB16297-1996), and the ammonia meets the requirements of Table 2 of the Emission Standard for Odor Pollutants (GB14554-1993). Table 5-3:Exhaust Pollutant Organized Emission Test Results Test Result Standard Test Emission Emission Emission Date Compliance point Pollutant Concentrati Emission Concentratio Emission on Rate(kg/h) n Rate(kg/h) (mg/m3) (mg/m3) Exhaust Particulates 2.1 4.09×10-3 120 3.5 √ 2021. Emission 4.9 4.9 √ Port Ammonia 0.81 1.54×10-3 / The sources of unorganized air emissions from the Yibin Branch are mainly dust and ammonia from the production workshop. According to the test results of unorganized emission of exhaust gas by Henan Moore Testing Co., Ltd. on April 14, 2021 (see Table 5-4), the unorganized emission of dust meets the requirements of the unorganized emission limit value of Table 2 of the Comprehensive Emission Standard for Air Pollutants (GB16297-1996), and the unorganized emission of ammonia meets the requirements of the Emission Standard for Odor Pollutants (GB14554-1993) Table 1 in Class II standard requirements. The sources of unorganized air emissions from the Yibin Branch are mainly dust and ammonia from the production workshop. According to the test results of unorganized emission of exhaust gas by Henan Moore Testing Co., Ltd. on April 14, 2021 (see Table 5-4), the unorganized emission of dust meets the requirements of the unorganized emission limit value of Table 2 of the Comprehensive Emission Standard for Air Pollutants (GB16297-1996), and the unorganized emission of ammonia meets the requirements of the Emission Standard for Odor Pollutants (GB14554-1993) Table 1 in Class II standard requirements. Table 5-4: Exhaust Pollutant Unorganized Emission Test Results. Particulates (mg/m3) Ammonia(mg/m3) Test point Date Results Standard Compliance Results Standard Compliance Downwind1# 0.217 √ 0.08 √ 2021.4.9 1.0 2.0 Downwind2# (09:00-10:00) 0.250 √ 0.10 √ 26 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Particulates (mg/m3) Ammonia(mg/m3) Test point Date Results Standard Compliance Results Standard Compliance Downwind3# 0.200 √ 0.09 √ Downwind4# 0.251 √ 0.11 √ Noise Emission The noise source of the Yibin Branch is mainly the equipment noise in the production process. According to the noise monitoring results of Henan Moore Testing Co., Ltd. on April 14, 2021 (see Table 5-5). As the south plant boundary is adjacent to Luoyang Group Longmen Glass Co., Ltd., the noise monitoring value may be influenced by the noise from other plants, so the noise from the south plant boundary is not monitored. The north plant boundary is adjacent to S320, and the noise monitoring results meet the 4a class standard (i.e., 70dB during daytime and 55dB during nighttime) of the Environmental Noise Emission Standard for Industrial Boundary (GB12348- 2008); the east plant boundary is adjacent to Duleyuan Hotel and Luoyang Qiangrong Glass Mirror Co., Ltd., and the west plant boundary is adjacent to Luoyang Longmen Glass Group and Gulongxuan Hotel. The reason may be due to the existence of municipal road renovation on the west and east side of the front of the Yibin Branch, from day to night, which may have a certain impact on the boundary noise of the Yibin Branch. According to the monitoring report of 2019 before the renovation of municipal roads, it can be seen that the noise monitoring of the factory boundary of the Yibin Branch can meet the environmental impact report form approval of the " Emission Standard for Industrial Enterprises Noise at Boundary" (GB12348-2008) category 1 standard (i.e. 55dB during the day and 45dB at night), the current situation of the enterprise is the same as the production situation in 2019 , thus judging that the noise in 2021 Monitoring exceeds the standard for the reason of municipal road renovation, and the Yibin Branch production has nothing to do with. Table 5-5: Noise Test Results Daytime Leq [dB(A)] Nighttime Leq [dB(A)] Test point Date Noise Noise Standard Compliance Standard Compliance Value Value North Boundary 57.3 70 √ 47.7 55 √ East Boundary 2021.4.9 54.1 55 √ 46.6 45 × West Boundary 55.8 55 × 47 45 × North Boundary 58.2 70 √ 47.7 55 √ East Boundary 2019.3.25 53.3 55 √ 44.3 45 √ West Boundary 52.7 55 √ 44.7 45 √ 27 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Chemical Management The chemicals used in the production of the Yibin Branch include sodium dodecyl sulfate, urea, foaming agents (F801, Fchj-50, APG0810, KLH-30), fire-fighting auxiliary F1212, fire-fighting auxiliary YF-138, anionic surfactants, xanthan gum, diethylene glycol butyl ether, ethylene glycol, etc. In addition, a small amount of gasoline and isopropyl alcohol will be used in the fire-fighting test. Except for gasoline and isopropyl alcohol, all other chemicals are not hazardous chemicals. Hazardous chemicals are stored separately from other chemicals in designated chemical warehouses at the Yibin Branch and are equipped with warning signs and fire-fighting equipment. There are designated management personnel to conduct regular inspections of the chemical warehouse. The safety information sheet of chemical substances has been posted and the secondary containers have been set up, therefore, the chemical storage of the Project meets the requirements of relevant regulations. Solid Waste Disposal The solid waste generated by the Yibin Branch mainly includes waste drums and bags, sediment from the circulation pool outside the flushing drums, sludge from the sewage treatment station and domestic waste, shown as follows: The volume of waste packaging drums and bags is 7.1 tons per year, which is collected and handed over to the raw material manufacturer for recycling; the empty drums of gasoline and isopropyl alcohol are reused; the volume of dust and other sediment generated by the circulation pool outside the flushing drums is 0.8 kg per year, which is collected and transported to the Zhuge Town Refuse Transfer Station by the Xihan Village Committee; the volume of sludge generated by the sewage treatment station is 1.5 tons per year, which is collected and transported to the Zhuge Town Refuse Transfer Station by the Xihan Village Committee. The sludge generated from the sewage treatment station is 1.5 tons per year, which is collected and transported to the Zhuge Town Refuse Transfer Station by the Xihan Village Committee; the domestic garbage is collected and transported to the Zhuge Town Refuse Transfer Station by the Xihan Village Committee. Ecological Impact The Yibin Branch is located in the southwest of Yibin District, and the plant resources are mainly artificially cultivated food crops, cash crops and vegetables, and the animals are mainly artificially raised domestic animals. According to the survey, there are no cherished plant and animal species in the evaluation area. Therefore, the potential impact of this pilot project on the local ecosystem is small. According to the online information search and interviews with on-site management personnel, the Yibin Branch has not received any complaints from the surrounding residents during its operation period and has not received any punishment from local government departments. The feedback obtained from the interview with the relevant personnel of Zhuge Town Environmental Protection Office on July 23 was consistent with this. 28 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 5.2 OCCUPATIONAL HEALTH AND SAFETY AUDIT The existing occupational health and safety (OHS) risk identified of the factory is summarized in Figure 5-1. The occupational health risk identified is described in 5.2 of this chapter, and the occupational safety risk identified will be described in 5.3 of the next chapter. Figure 5-1: Diagram of Main OHS Risks in the Process Flow of Yibin Branch As shown in the figure above, the health hazards of operation period mainly include: Noise hazard, which is from the operation of pumps, mixing tanks and other equipment. In the selection of pumps, mixing tanks and other equipment, Yibin Branch selected the model with low noise, and installed damping pads for relevant equipment. The damping pads are square cement damping foundation. In addition, the equipment with high noise has been centrally arranged in the production area to reduce the impact of noise on the non-production area. Chemical hazards, which are from chemicals used in the production of fire extinguishing agent and chemicals in case of leakage. At present, all chemicals used in the production process of Yibin Branch are general chemicals and do not involve hazardous chemicals. All chemicals are stored in the designated area, and the chemicals are well packaged. When in use, chemicals are transported to the mixing tank through pumps and closed pipelines to minimize the direct contact of operators with chemicals. Yibin Branch provides employees with personal protective equipment (PPE) such as protective masks and gloves. In view of the above occupational hazards, Yibin Branch has planned to entrust a qualified third- party agency to carry out occupational hazard status evaluation and occupational disease factor detection. The Yibin Branch has committed to completing the above work by April 2022, 29 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China completing the declaration of occupational hazards according to the report conclusions, and organizing employees exposed to occupational hazards to have occupational health examination. According to the current laws and regulations, occupational hazard status evaluation report is only prepared for checking and there is no need to keep records. At present, the declaration of occupational hazard items shall be completed through the nationally unified online declaration system (except Shanghai). In addition, the existing employee training plan of the Yibin Branch does not include the topic of occupational hazard protection, and no special occupational health training has been carried out. Yibin Branch will arrange an employee occupational health examination and organize an employee occupational health knowledge training two months after the declaration of occupational hazard factors. The specific schedule is shown in Table 5-6. Table5-6:Implementation Plan of Occupational Health Status Evaluation and Occupational Hazard Factor Detection Details Completed by Notes Sign occupational health status evaluation and occupational disease factor detection service December 2021 contract with a third party The third party completes the current situation February 2022 evaluation report Complete the declaration of occupational February 2022 hazard factors Conduct an employee occupational health April 2022 examination Conduct an employee occupational health The training time shall be consistent with April 2022 training the training plan next year 5.3 SAFETY AUDIT The production of the Yibin Branch does not involve highly toxic chemicals, highly toxic substances, precursor, and explosive chemicals, nor dangerous chemical reactions. There is no major hazard source of dangerous chemicals, and the company obtained the safety production standardization Certificate in May 2021. The main hazardous and harmful factors during operation include: Mechanical injury: There are many rotating facilities (pumps, agitators, etc.) in the production area. If the safety protection facilities of the above mechanical transmission parts are not well prepared, there is a risk of mechanical injury such as winding, extrusion and cutting at the rotating parts such as couplings. In addition, the above mechanical equipment may throw out parts that are not firmly fixed during operation (workpiece), hitting the human body, thus posing a threat to personal safety. Electric shock: The equipment in the production area is electrically driven, which may cause electric shock accidents due to electric leakage of equipment, non-standard operation of staff and 30 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China other reasons. When a human body is shocked, accidents due to nerve paralysis are likely to occur such as falling. Falling from height: There is a working platform in the production area, which is equipped with protective fence and escalator. If the protective fence and escalator are loose and broken, workers may fall from height during platform operation or patrol inspection. Fire accident: A small amount of gasoline and isopropanol will be used as fuel during fire extinguishing test. If the container storing the chemical is damaged and cause leakage, a fire accident may occur when the fuel meets fire source or heat source. According to management personnel, during the operation of the Yibin Branch, the production specialist carries out safety patrol every day, and the production department carries out self- assessment of safety production every month. Since the operation of the Yibin Branch, no industrial injury or accident has occurred. In December 2020, the Yibin Branch entrusted a qualified third-party company to carry out the lightning protection device testing. The grounding resistance of all lightning protection devices in the plant meets the requirements of laws and regulations. According to Article 32 of China Work Safety Law, the Yibin Branch does not belong to the mining, metal smelting construction project, also the site does not involve in the production, storage, loading and unloading of dangerous goods, so there is no need to carry out safety pre-evaluation, acceptance evaluation and status evaluation. The safety management personnel of the Yibin Branch have obtained the training certificate of safety production and management as required. According to the on-site audit and management consultations, the Yibin Branch uses a special equipment (forklift). However, the use registration certificate and regular inspection report of the forklift are not provided for review, and the forklift operator has not provided the special equipment operation certificate. At present, the company is reapplying for the use registration certificate of the forklift, the regular inspection report of the forklift and the special equipment operation certificate for the forklift operator. It is expected that all licenses required, and forklift inspection will be completed within 4 months. The Yibin Branch prepared the emergency plan for safety accidents in July 2016. According to the consultation with Luoyang Emergency Management Bureau of Henan Province (Tel: 0379- 63917639), the Yibin Branch needs to evaluate the emergency plan every three years according to the requirements of The Measures for Emergency Management Plan for Safety Accidents (2019). At present, the enterprise has started the review of the emergency plan for production safety, and the specific implementation plan is shown in Table 5-7. Table5-7:Emergency Implementation Plan of Production Safety Details Completion time Notes Sign a service contract with a third-party regarding production safety emergency December 2021 plan The third party completes the emergency February 2022 Review every three years 31 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Details Completion time Notes plan Complete the registration with the February 2022 government department The drilling frequency and requirements Conduct a safety training and emergency March 2022 shall be consistent with the emergency drill plan The Yibin Branch has planned to apply the reissuance of the fire completion acceptance, and the enterprise promises to obtain the acceptance certificate in September 2022. The specific implementation schedule is shown in Table 5-8 Table5-8:Luoyang Langchao Fire Technology Corrective Plan for Fire Completion Acceptance Completion Planned Completion No. Work Required Notes Standard Time Apply for reissuance of planning Receipt of 1 April 2022 permit and construction permit permits Apply for reissuance of the approval of Receipt of 2 May 2022 the commencement report documents Apply for reissuance of Review Receipt of 3 opinions on fire protection design of May 2022 documents construction project Have the drawings stamp, designer's Apply for reissuance of completion Receipt of signature stamp, 4 May 2022 acceptance drawings drawings drawing review qualification seal and completion stamp Apply for reissuance of the project Receipt of 5 June 2022 completion acceptance report report Business license and Sign a contract with a third-party fire Contract 6 July 2022 qualification certificate facility testing institution signed of testing institution. Qualification certificate of firefighting Receipt of 7 July 2022 facilities Inspection certificate Supplement the quality certificate of Receipt of 8 July 2022 fire products certificate Accepted Fill in the application form for fire and Receiving the notice of 9 protection acceptance of construction August 2022 feedbacks site acceptance project given Completion August 2022 (Subject to Qualification or 10 Site acceptance of government’s time) rectification acceptance acceptance or 32 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Completion Planned Completion No. Work Required Notes Standard Time September 2022 Liaise with the issuance of fire Receipt of 11 (Subject to completion acceptance report report government’s time) The on-site emergency facilities of Yibin Branch include fire extinguishers, fire hydrants, emergency lights, emergency indication signs and emergency evacuation diagrams. During the on-site audit, Yibin Branch provides 2021 annual training plan regarding management, laws, and regulations, ISO9001 system and safety production. According to the consultations with management personnel, Yibin Branch has not carried out drills for firefighting, flood control and other special emergency plan. As mentioned above, the enterprise plans to carry out relevant drills before March 2022 according to the drill plan of environmental and safety emergencies. 5.4 SOCIAL AUDIT Project Land Use The Yibin Branch covers an area of 13,806 square meters (about 20.7 mu). According to the site management, the project land is the collective construction land rented from Xihan village, Zhuge town. On April 28, 2010, Langchao Fire Technology obtained the collective land use certificate (See Annex 2). According to the consultation with Mr. Li of Zhuge Town Land Office, before Langchao Fire Technology built facilities on the leased land, Xihan village committee had gone through the procedures for the conversion of collective agricultural land to construction land. Langchao Fire Technology signed a construction land lease agreement with Xihan village committee and obtained a collective land use certificate, which met the requirements of local land planning and relevant laws and regulations. In October 2009, Langchao Fire Technology and Xihan village committee signed a collective construction land-use right lease agreement (hereinafter referred to as the "agreement", see Annex 3 for details). The agreement stipulates that the lease term of the land-use right is from October 30, 2009 to October 30, 2029, and the rent is paid annually according to the grain market price, that is, the annual output of the land is 1,000 kg/mu/year of wheat and corn respectively, and the grain price is subject to the statistics of the market price of wheat and corn published by the local price bureau at the end of August each year. The rent shall be paid in advance before use annually. The rent of the current year shall be paid from the date of signing the contract, and the rent of the next year shall be paid before October 30 of each year. According to Mr. Song, member of Xihan village Party committee, before 2009, all the land leased by Langchao Fire Technology was contracted by households, involving three villagers' groups, namely the group 1, group 2, and group 10. The annual land rent was paid to the land contractors, and the village group did not retain it. In October 2020, the land rent for the next year (i.e., from 33 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China November 1, 2020, to October 30, 2021) has been distributed to the villagers. Mr. Song said that due to the lack of documentation caused by several relocations of the village committee office, the register of lease holders, rent distribution records and procedures for transferring agricultural land to construction land have not been obtained during this survey. According to the random consultations with the lease holders, the land rent in 2020 and before having been paid to the households, and the land rent in 2020 is about 2,200 yuan/mu. The villagers consulted said that they did not earn much from farming (the net profit of farming was about 500 yuan/mu). The villagers were willing to lease the land to obtain the land rent. The villagers thought that the rent exceeded the income brought by land loss, and the villagers were satisfied. Workforce and Working Conditions In accordance with the national and provincial regulations on labor, Langchao Fire Technology has developed procedures for labor management, including recruitment management, personnel management, promotion management, attendance systems, performance management and remuneration system. Based on management consultation and document review, a total of 67 employees were employed for the Project, including 52 from Langchao Fire Technology (responsible for management and operations, and not responsible for production), 5 from the Yibin branch, and 10 temporary workers, as shown below. Langchao Fire Technology: 7 staff in the General Manager Office, 13 staff in the Administration Department, 3 staff in the Supply Department, 2 staff in the Technology Department, 6 staff in the Development Department, 1 staff in the Production Department, 14 staff in the Sales Department and 6 staff in the Finance Department. There are 30 male employees and 22 female employees in Langchao Fire Technology. The 22 female employees are all engaged in light manual jobs, such as sales, housekeeping, accounting, technical quality inspectors, cleaning, clerks, and office management. All 52 workers have signed labor contracts. Langchao Fire Technology has 1 ethnic minority employee, Man ethnic, who has been working with the company for six years and has no special habit in diet. The youngest employee is 22 years old and works as a support worker in the Engineering Management Centre. Yibin branch: 1 production manager, 1 office staff, 1 sale and 2 production workers. Two of the five employees at the Yibin branch are female, working in sales and in office. The youngest of the employees is 32 years old and works in sales. 5 workers are all Han ethnic, and all have signed labor contracts. 10 temporary workers: 7 are males and 3 are females. The youngest is 34 years old and as a production worker. All employees are Han ethnic. According to the management consultation and document review, there are 13 production workers (including 3 formal employees and 10 temporary workers) in the Project. The working hours of production workers are from 8:00 to 12:00 and 14:00 to 18:00. During the time of audit, 34 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China randomly selected labor contracts, personal files, attendance sheets, salary records and social insurance were provided for review. As confirmed during the audit, the Project has signed labor contracts with 10 temporary workers, and the Project had purchased accident insurance for these 10 workers. According to the production workers' attendance sheet and salary records from April to June 2021, it was found that there was overtime and continuous work for the production workers. The production workers were paid on a daily salary at CNY 100 or 110 per day. During this audit, no juvenile worker, child worker, gender discrimination, harassment and forced labor were identified through document review and onsite consultations. However, the Project did not develop written social responsibility management procedures in place for anti-discrimination, anti-harassment, prohibition of child labor, and prohibition of forced labor. According to management consultations, male and female employees are treated equally in terms of wages, training, promotion, and career development. In addition, employees of both Langchao Fire Technology and Yibin Branch are entitled to benefits under the Labor Law. The specific benefits enjoyed by female employees are as follows. • Females are entitled to maternity leave in accordance with the law. Physical work arrangements will be avoided during pregnancy and job transfers will be made if necessary; • During breastfeeding period, female is entitled to one hour of breastfeeding leave in accordance with the law; • The Project and the dormitory building have separate toilets for females; • On the Women's Day (8th March), Langchao Fire Technology and Yibin Branch gives gifts to female workers (mainly daily necessities, tissues, shampoo, etc.). The Yinbin Branch has a self-operated canteen, located on the 1st floor of the office building, which provides lunch for staff at a price of CNY 2. A valid canteen operator's health certificate and catering service license were provided for review. The staff of the Yibin Branch are mainly local workers. The Yibin Branch has built its own three-story dormitory building for employees to take their lunch break, with 6 rooms on each floor and 4-8 people living in each dormitory. Separate dormitories and toilets are provided for male and female workers respectively. The dormitory security is managed by the Project. According to on-site observations, the dormitories are clean and well equipped with fire-fighting equipment (e.g., evacuation signs, evacuation lights and fire extinguishers). Ethnic Minorities The Project is in Yibin District, Luoyang City, Henan Province. According to the on-site and village committee consultations, Xihan Village is not an area inhabited by ethnic minorities and the project does not involve ethnic minorities, therefore the pilot project does not involve any impact on ethnic minorities. Grievance Redressing Mechanism 35 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Langchao Fire Technology has established an internal grievance redressing mechanism (GRM). Employees are free to submit their grievances with the Administration Department. If the Administration Department cannot deal with it, the grievance will be reported to the General Manager Office, which will make the final decision. The Administration Department is responsible for keeping a record of grievances from each employee. Upon receiving a grievance, a reply as to whether it is accepted or not shall be made within three working days. Grievance without objective factual basis and based on subjective assumptions will not be accepted. Within 5 working days after receiving the grievance, the Administration Department must review the grievance and communicate with the appellant. If it is not possible to resolve, it will be reported to the General Manager Office for further processing. Employees of the Administration Department who have grievances can directly report to the General Manager Office. Based on management consultations, employees currently report grievance to and receive verbal feedback from their leaders. No records of grievances are kept. According to management consultations, the Yibin Branch uses internal GRM of Langchao Fire Technology and has not established an internal GRM. Langchao Fire Technology has not established a (external) community GRM and has not disclosed a community GRM to the surrounding communities. Based on management consultations. No grievance has been received by the surrounding communities for Langchao Fire Technology. A community GRM has been established during this assignment with the support from Stantec. (See Chapter 9.4 for details) 5.5 MANAGEMENT SYSTEM AND MECHANISM Based on the company and project assessment, the E&S issues arising from Yibin Branch are under the jurisdiction of Luoyang Zhuge Town Environmental Protection Office, Zhuge Town Emergency Management Office, and Zhuge Town Health Center. The E&S management procedures are developed and supervised by the Production Department in the Corporate, while the Yibin Branch followed the E&S management procedures in the Corporate and did not have separate E&S management procedures at project level. The Production Department of Langchao Fire Technology is responsible for the overall safety related work of the Yibin Branch. The Administration Department of Langchao Fire Technology is responsible for the overall environmental and health related work of the Yibin Branch. The organizational structure of the Langchao Fire Technology is shown in Figure 5-1. 36 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Figure 5-1 The Organizational Structure of the Langchao Fire Technology Based on document review and management consultations, Langchao Fire Technology 's existing E&S management procedures include: • Internal audit procedures • Management review control procedures • Environmental factor identification and evaluation control procedures • Occupational health and safety management procedures • Hazard identification and evaluation control procedures • Pollutant control procedures • Energy resource management procedures • Procedures for the identification of regulatory and requirements • Information exchange and communication control procedures • Management of change procedures • Contractor management procedures • Environmental/occupational health/safety incident investigation and non-compliance control procedure • Personnel management procedures • Payroll and attendance management procedures • Training management system Langchao Fire Technology has conducted EHS inspections as follows: • The Production Department conducts weekly safety meetings and monthly internal EHS reviews, and develops reviewing reports and non-compliance corrective plan, if any, in accordance with non-compliance control procedures. • The Production Department conducts regular training for production staff on environment, occupational health, and safety in accordance with the annual training plan. • The Production Department updates internal management procedures annually in accordance with changes in national EHS-related laws and regulations. 37 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China • Langchao Fire Technology conducts regular audits of the ISO9001, ISO14001 and ISO18001 systems. Langchao Fire Technology follows the emergency system and organization in the emergency plan for work safety and environmental emergencies prepared in 2016 for the current emergency management. The emergency management organization is shown in Figure 5-2: Figure 5-2: Emergency Response Management Organization The emergency response steps of Langchao Fire Technology are summarized as follows: Response Level Langchao Fire Technology divides the emergency response into level I and level II according to the nature, severity, controllability and impact range of possible work safety accidents and disasters. According to the specific situation of the accident, the emergency rescue headquarters shall determine and start the corresponding level of emergency rescue plan. Level II emergency response (minor accident): For accidents that can be handled by the company, the company should start the emergency plan, eliminate potential safety hazards, control the site and report to the Emergency Rescue Office of Yibin District. Level I emergency response (general accident): For accidents that cannot be handled by the company or ma cause casualties and need the assistance of external rescue forces, the company will report to the Yibin District Emergency Rescue Office. Upon approval, the relevant departments of the Yibin District will start the emergency plan at the district level. Response Procedure 1) In case of fire, mechanical injury, electric shock and other emergencies, the personnel on duty shall immediately handle the situation on site and call the police, and explain the accident situation, current emergency treatment situation and assistance to be provided to the principal responsible person. 38 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 2) The principal responsible person shall determine the response level according to the severity of the accident, immediately report the accident to the emergency rescue headquarters, and dial 119 to request external assistance. 3) After reporting to the police, the personnel on duty shall ask relevant personnel to meet the 119 vehicles at the intersection and guiding them to the accident scene. 4) After receiving the alarm call, the emergency headquarters shall immediately notify personnel of its own department and the accident rescue team to arrive at the site and practise the corresponding emergency plan. Emergency Response Measures In case of an accident, the emergency headquarters shall command all personnel for rescue who can participate and use various emergency equipment in the plant. During rescue, attention should be paid to analyzing the on-site accident situation and protecting the personal safety of rescuers. After rescue, the accident site shall be cleaned up and the cause of the accident shall be investigated. The company has developed corresponding on-site disposal plans for several types of accidents that may occur and cause great impact (fire and explosion, electric shock, falling, mechanical injury and lifting injury). The above types of accidents shall be redressed according to the on-site disposal plan. Response Closure When the accident is under control, the environmental pollution and hazards are eliminated, and the evidence is collected, the principal commander shall issue the order to relieve the emergency rescue, and the safety department shall notify the accident site to remove the alarm and dismiss the personnel on guard. When the evacuation of surrounding communities and organizations is involved, the principal commander shall notify the managers of surrounding organizations or the community leaders to shut the alarm. After the emergency, the accident shall be summarized, the notes on duty and other data shall be summarized and filed. Then the reporting materials shall be drafted and reported to relevant local government departments in accordance with relevant regulations. 39 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 5.6 FINDINGS AND CORRECTIVE PLAN During the assessment, the main E&S issues of Langchao Fire Technology and the Yibin Branch are shown in Table 5-9. Langchao Fire Technology has developed a commitment plan (See Annex 5) for this purpose and promised to carry out follow-up corrective work according to the following plan. Table 5-9:Findings Responsible Suggested Completion No Focus Issues Suggestions Compliance status party time indicator The Yibin Branch has provided the fire The Yibin Branch did not Langchao Fire Technology should completion subject to application contact the local Housing and Fire protection acceptance work plan processes of fire Urban-Rural Construction Bureau Langchao completion and committed to 1 EHS permit protection completion to prepare fire protection Fire 9 Months acceptance implement it acceptance in accordance completion acceptance Technology documents according to the plan. with the requirements of documents in accordance with It is expected to be laws and regulations. relevant requirements. completed by the end of September 2022. The Yibin Branch has commissioned a third party to prepare the Langchao Fire Technology should environmental contact local EEB and emergency plan. The safety The Yibin Branch did Emergency Response Bureau to retrospective emergency review the production prepare safety emergency plan evaluation of the work Emergency Langchao plan and the safety emergency plan and the environmental safety emergency 2 plan and Fire 3 Months environmental and the environmental emergency plans every three plan is also under drills Technology emergency emergency plans every years and register them in planning. It is plans and drill three years government departments. expected that both records Conduct relevant drills every year plans will be and keep drill records completed by February 2022. A drill will be followed the plans. 40 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Responsible Suggested Completion No Focus Issues Suggestions Compliance status party time indicator The Yibin Branch has planned to commission a third Langchao Fire Technology shall The Yibin Branch has not Assessment of party to carry out entrust a qualified third party to carried out identification of occupational occupational health carry out identification of occupational health hazard status, status evaluation and occupational health hazards and hazards and detection of detection of occupational hazard detection of occupational disease occupational disease Langchao occupational factor detection Occupational hazards. According to the 3 hazards, and has not Fire 4 Months hazard factors services, which is Health identified occupational hazard provided occupational Technology and expected to be factors, regular occupational health examination for occupational completed by March health examination shall be employees exposed to health 2022. The conducted for employees occupational disease examination of occupational hazard exposed to occupational hazard hazards employees. declaration and factors. occupational health examination will be carried out after it. The Yibin branch uses one special equipment Langchao Fire Technology should (forklift). However, the contact the local Quality Forklift The enterprise is re- registration certificate and Supervision Bureau and apply for registration applying the forklift periodic inspection report a registration certificate for the certificate, certificate, special of the forklift were not use of forklifts. And entrust a Langchao monitoring equipment operation Special 4 provided for review, and qualified third-party to conduct Fire 4months report, certificate and regular Operation the forklift operator did not regular forklift monitoring. In Technology operation inspection of forklift. It provide a special addition, Langchao Fire certificates for is expected to be equipment operator's Technology should apply for special completed within four certificate. special equipment operation equipment months. certificates for forklift operators. The training plan for Langchao Fire Technology Langchao Fire Technology should Relevant contents Langchao did not include strengthen the environmental and Relevant have been included in 5 Training Fire 1 month environmental and occupational health related procedures and the 2022 training Technology occupational health training. training records schedule related topics 41 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Responsible Suggested Completion No Focus Issues Suggestions Compliance status party time indicator A list of households affected by land lease and a distribution record of land rent in According to the 2021 have been consultations with the provided. Due to the village committee, List of land lack of data storage of Langchao Fire Technology tenants, the village committee, rents the land of Group 1, Langchao Fire Technology should records of rent the procedures for Group 2, and Group 10 of contact Xihan Village Committee payments and agricultural land Xihan village, and the rent to obtain list of land tenants, Langchao documents for conversion cannot be 6 Land Lease is paid every year. records of rent payments and Fire 1 month the conversion provided. Based on However, no list of land documents for the conversion of Technology of agricultural the review of the tenants, records of rent agricultural land to construction land to provided data and the payments and procedures land and keep relevant records construction confirmation of the for the conversion of land land leased farmers agricultural land to that their actual rights construction land were and interests are available for review. protected. Therefore, this case is deemed compliant and acceptable. Langchao Fire Technology has established an internal GRM; However, Langchao Fire Technology should Written no written record of the further improve the employee documents of The Yibin Branch has opinions of employees, GRM and keep records for the Langchao Grievance GRM and established a 7 feedback and handling results of grievance handling. In Fire 1 Month Mechanism written community GRM and results are available; addition, a community GRM Technology grievance become compliant. should be established and Langchao Fire Technology records recorded. has not established a community GRM. 42 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 6. PILOT PROJECT ACTIVITIES Langchao Fire Technology submitted The Implementation Plan and Work Plan of Demonstration Activities of Foam Fire Extinguishing Agent Production Enterprises in Fire Industry to the Centre for Foreign Cooperation and Exchanges of the Ministry of Ecology and Environment (FECO) in June 2021. According to the declaration, the objectives of the pilot project are: • Develop new foam fire extinguishing agent formulation contains no PFOS; • Trial produce foam fire extinguishing agent contains no PFOS; • Test and evaluate the reliability of the trial product's performance; • Achieve that the company's products of foam extinguishing agents containing PFOS are completely discontinued. According to the declaration, the pilot project includes the following tasks: • Task 1: New formulation design; • Task 2: Production equipment replacement and trial production; • Task 3: Quality control of trial production; • Task 4: Entrust a third party to conduct test and evaluation; • Task 5: Carry out physical fire experiment; • Task 6: Stop producing products containing PFOS; • Task 7: New product publicity and promotion; • Task 8: Summary of demonstration activities. The pilot project is planned to be completed within one year. The preliminary schedule is shown in Table 6-1: Table 6-1:Diagram of Project Schedule Activities Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. Task 1 Task 2 Task 3 Task 4 Task 5 Task 6 Task 7 Task 8 43 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China The proposed technical route for the pilot project is shown as Figure 6-1: Figure 6-1:Diagram of the project technical route According to the consultations with management personnel, the pilot project is mainly to replace some product formulas and optimize and replace the original devices and equipment according to the selected alternative formula. The project activities involved in the pilot project mainly include: Laboratory development of alternative product formulation • The following 5 types of representative foam fire extinguishing agent products will be developed to replace the original PFOS foam extinguishing agent products (water-soluble film forming foam extinguishing agent and water film foam extinguishing agent). The product model is 3% (AFFF, -20 ℃) - seawater resistant, 6% (AFFF, -10 ℃) - seawater resistant, 6% (AFFF, -20 ℃) - seawater resistant, 3% (AFFF/AR, -30 ℃) - seawater resistant, And 6% (AFFF / AR, - 20 ℃) - seawater resistant. Stop producing the two products containing PFOS and retain the other four existing products. • Select surfactants that do not contain PFOS are selected to mix with other surfactants and auxiliaries to prepare PFOS free foam stock products. At present, the raw materials to be 44 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China selected include ethylene glycol, anionic surfactant, diethylene glycol butyl ether, foaming agent 1, foaming agent 2, foaming agent 3 and antifreeze. Optimization and renovation of equipment and facilities • The PFOS residues from the inner walls of original foam extinguishing agent production equipment (including reactor, stirred tank, pipe and valve, etc.) are not easy to be cleaned. Therefore, if not replaced, the test effects for PFOS-free products will be directly affected. • Considering that products with and without PFOS share the same production line in the current production process of the Yibin Branch, the pilot project will update and replace the production equipment containing PFOS residues in 10 production lines, and add new production equipment (See Table 6-2), adjust the production process, optimize the process equipment, and adopt special water supply device and intelligent control system to ensure the preciseness and accuracy of trial production results. The company will also add purified water treatment equipment, online production monitoring equipment, intelligent feeding device and other equipment, and upgrade the old production equipment such as production mixing tank, reactor, pipeline and electric control valve so that the new production equipment will not be polluted by the original production equipment, nor the production process be affected by the production of the original foam extinguishing agent nor the new production equipment contains PFOS substance. The existing ten production lines of the Yibin Branch will be adjusted according to the above methods. Table 6-2:List of production facility to be updated No Name of Facility Type of update Quantity Specifications Mixing tank device Replacement 3 m3, 2 m3, 1 1 12 m3 2 Dump tank Replacement 6 5 m3 3 Water storage tank Replacement 2 8 m3 4 Dump pump Replacement 10 / 5 Solenoid valve Replacement 40 / 6 Electric valve Replacement 40 / 7 Pipes Replacement 3000m / 8 Master computer Replacement 1 / 9 Metering device Replacement 5 Weighbridge Purified water treatment Replacement / 10 1 equipment 11 Automatic feeding device Newly added 6 / PFOS / PFOA detection Newly added / 12 1 equipment 45 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Product test and evaluation • After the preliminary tests of the five new trial products are qualified and the technical performance meets the standard requirements, the nationally qualified testing institution, will carry out the testing and evaluation on each model of the trial products once, ensuring to meet relevant standards. • The reliability of alternative PFOS-free technology is evaluated against the performance of original foam extinguishing agent containing PFOS, including solidification point, accelerated aging, precipitate, specific fluidity, pH value, surface tension, interfacial tension, corrosion, foaming times, liquid drainage time and fire extinguishing performance. • The evaluation tests of safety and environmental performance such as toxicity test, biodegradation experiment, etc. are carried out for the PFOS-free foam fire extinguishing agent which has been verified of its fire extinguishing reliability. Replacement of PFOS-Containing Foam Fire Extinguishing Products • The five types of PFOS-free foam fire extinguishing agents will be submitted to China Certification Center for Fire Products of the Ministry of Emergency Management (CCCF), a national qualified third-party testing institution, for testing, including the fire-fighting experiments under physical fire scenarios, to verify the reliability of the new products. Then obtain the testing report and voluntary certificate of the new products from the CCCF. It shall be noted that the CCCF will be responsible for the fire-fighting experiments under physical fire scenarios, the Yibin Branch will not be involved in the experiments except providing PFOS- free foam fire extinguishing products and obtaining the report after the experiments. • After passing the testing, the PFOS-free foam fire extinguishing agents will be put into mass production to replace the PFOS-containing products completely. Advertising and Promotion • The PFOS-free foam fire extinguishing products will be promoted through the company’s website, social media (e.g., WeChat), and displayed prominently on the homepage of the website. Knowledge about PFOS and Stockholm Convention will also be introduced at the website’s Industry News. • Fire Company, a professional app developed by Langchao Fire Technology, connects the upstream and downstream of the industry, which can be used for promotions. • Promotions can also be given at the exhibitions, relevant fire-fighting meetings organized by associations and government if Langchao Fire Technology attends. 46 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 7. MANAGEMENT ORGANIZATION SETTING Many participants are involved in the implementation of this pilot project. To achieve the smooth progress of this pilot project and ensure that the project complies with the WB’s environmental and social standards and China’s regulatory and policy requirements, the pilot project plans to set up a project management mechanism consisting of the following parties. FECO: It is the overall project management institute of this pilot project and is generally responsible for the implementation of the project to meet the requirements of WB’s standards and Chinese regulations and policies. Local functional departments (Zhuge Town People's Government, Zhuge Town Environmental Protection Office, Zhuge Town Land Office, Zhuge Town Emergency Management Office, Zhuge Town Health Center, etc.): Responsible for the daily management and supervision of WFS. The Yibin Branch: It is the main body of implementation of this pilot project, responsible for formulating and organizing the implementation of PFOS reduction and elimination project plans, performing duties according to the ESMP. It also takes the main responsibility for emergency management, waste disposal, monitoring and reporting, etc. The Yibin Branch entrusts the construction vendors for specific implementation of relevant construction content, entrusts Xinxiang Dong Fang Tong Ye Co. Ltd. (i.e., raw material vendor) for recycling and reusing, and entrusts independent monitoring vendors to monitor and issue reports. The Yibin Branch will set up a special project team, with the general manager responsible for project management and external liaison. The project team has four teams for formula development, manufacturing, testing and evaluation, and project promotion, responsible for specific implementation. Equipment suppliers, construction contractors, testing vendors, waste disposal vendors: They are responsible for providing production equipment, testing equipment and materials according to the project implementation plan of the Yibin Branch, and carrying out corresponding equipment removal, cleaning, installation, testing, waste disposal, etc. Consulting agencies (Henan University of Science and Technology, Tianjin Fire Research Institute, Stantec Co., Ltd., etc.): They are responsible for the whole process of project implementation, providing technical, environmental, and social management consulting services for the Yibin Branch. The system structure of the project management agencies of this pilot project is shown in Figure 7-1. 47 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Figure 7-1:Schematic Diagram of the System Structure of the Project Management Agencies 48 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 8. PILOT PROJECT E&S IMPACT ASSESSMENT In accordance with the project activities described in Section 7, this section assesses the environmental and social impacts involved in the pilot project activities. 8.1 ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT This pilot project activities which may involve environmental and social impacts are: (1) PFOS alternative formula research and development, (2) product performance test (3) the removal of production equipment and production equipment replacement, (4) pilot project trial production. This pilot project production line will continue using the workshop of existing foam extinguishing agent project, which does not involve new plant or new land, and does not increase or decrease staff strength. The potential environment, occupational health, and safety (OHS) risks involved in different stages of the pilot project are described in the following paragraphs. PFOS alternative products formula research and development and product performance test stage The alternative formula identified in this pilot project include Ethylene glycol, diethylene glycol butyl ether, foaming agent 1 (environmentally friendly foaming agent), foaming agent 2 (anionic surfactant), foaming agent F801N, antifreeze F301N. The safety information data for these six chemicals are shown in Table 8-1, and the six chemicals are general chemicals, of which ethylene glycol, diethylene glycol butyl ether, foaming agent 2 (anionic surfactant), foaming agent F801N and antifreeze F301N are consistent with the raw materials currently used by the Yibin Branch. However, the drug ratio in the alternative product formulation will be different to some extent. Foaming agent 1 (environmentally friendly foaming agent) is a new chemical, which is used to replace the currently used fire-extinguishing assistant F1212 containing PFOS. Table 8-1:The Alternative Formula Identified in This Pilot Project Annual Chemical Physical/Che Chemical Composition Environmental/Hazards Consumptio name mical Hazards Type n (Ton) Not listed as persistent, Irritating to skin bioaccumulative or toxic. Diethylene and eyes, Avoid pouring into any sewer, Diethylene glycol General glycol butyl potential harm ground, or into any body of 12 monobutyl ether Chemicals ether in contact with water. All disposal operations skin must comply with local regulations. Ethylene Swallowing can General Ethylene glycol / 60 glycol be harmful Chemicals Foaming This product is 90% agent 2 Sodium alkyl Irritating to skin biodegradable and can be General 72 (Anionic sulfate, H2O and eyes treated by incineration in a Chemicals Surfactants) locally approved manner Foaming Glucose pyran, agent 1 oligomer, decyl General (environment / / 60 octyl glycoside, Chemicals ally friendly H2O foaming 49 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Annual Chemical Physical/Che Chemical Composition Environmental/Hazards Consumptio name mical Hazards Type n (Ton) agents) Vernoside, Irritating to Foaming This product is not toxic and General ethylene glycol, eyes, nose, and 60 agent F801N biodegradable. Chemicals H2O throat Glucose, Antifreeze cellulose, General 60 F301N sodium Chemicals benzoate For the research and development of PFOS phase-out products, it is necessary to carry out the corresponding product formulation test in the laboratory, and conduct preliminary selection by the performance of foaming, liquid analysis, aging, freezing, and melting according to the relevant requirements of national standard GB15308-2006. The initially selected products will be tested in small fire extinguishing experiments. Small fire extinguishing experiments will be carried out in the special fire scene setting area. New formula will be applied to fight the simulated fire to verify the fire-fighting effects. The simulated fire will be extinguished with new formula products to verify the effectiveness of the product. If the experimental results meet the technical requirements, a trial production of no less than 1000kg will be conducted, and the product will be sent to a qualified third party for testing as per GB14308-2006 requirements. The main environmental impact in this process is that the experimental wastewater produced by formula preparation and container cleaning, and each time of the fire extinguishing test will produce about 20 liters of wastewater. The specific number of tests cannot be determined yet. The main pollutants in the experimental wastewater are surfactant. Because the product experiment of this pilot project and of existing project are basically the same, which produces no new pollutants, the laboratory wastewater and fire extinguishing experimental wastewater can be discharged to the wastewater treatment station of the plant, and then discharged through "A2/O + secondary sedimentation tank + filtration�? to Yidong Canal and further to Taohuadian Reservoir. After passing the third-party testing and evaluation accordance with GB15308, CCCF will carry out fire extinguishing testing for different models of trial products in the physical fire scenes to further verify the fire extinguishing effect and performance of the products. CCCF is a professional agency authorized and approved by the China National Certification and Accreditation Administration Commission to take the following responsibilities: (1) implementation of the compulsory or voluntary certification of fire products, and technical appraisal of fire products in China; (2) development and implementation of fire protection product conformity assessment standards, implementation rules and technical guidelines; (3) Implementation of international mutual recognition of fire protection product conformity assessment in accordance with the laws and regulations, management of the expert group of China's compulsory fire protection product certification, participating in various sub-technical committees of the national fire protection standardization technical committee; and (4) providing quality information of fire protection product certification and technical appraisal for the fire protection departments, product quality supervision, inspection and quarantine departments, and the general public. 50 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China According to the project implementation plan, the physical fire scene fire extinguishing testing is carried out by Fire Product Conformity Assessment Center. The Yibin Branch is only responsible for providing foam fire extinguishing agent and is not engaged in the specific experimental process, the testing results can be obtained after testing. Its environmental and social impact assessment is therefore not within the scope of this report. During the research and development of PFOS alternative product formulation and product performance testing, the main occupational health risks are related to the chemicals used during the R&D and testing process, as well as gasoline and isopropanol used as fuel for fire extinguishing experiments. Except for foaming agent 1 (environmentally friendly foaming agent), the remaining chemicals were consistent with those used in the existing production process of the Yibin Branch. Foaming agent 1 (environmentally friendly foaming agent) is a general chemical. According to its MSDS, it will not cause physical/chemical hazards to human body and environment. Therefore, the occupational health risk in the production process of the pilot project products is lower than that in the current project. Therefore, it can be managed in accordance with the current occupational health risk control system of the Yibin Branch. All employees shall be equipped with protective masks, protective glasses, protective gloves, work clothes and other PPE. In addition, the work site shall also be equipped with emergency spray and eye washing facilities. In this stage, the main safety risks are electric shock, mechanical injuries, and fire accidents, which are the same as in the existing production process of the Yibin Branch. Therefore, according to the existing safety management system, it can be controlled through strengthening the safety training and daily supervision of employees, improving the awareness of PPE wearing, increasing the daily inspection frequency of fire facilities and other aspects of the work. According to the physicochemical properties and degree of environmental hazard of these chemicals in the alternative formula, the environmental and social impacts and mitigation measures in this stage are summarized in Table 8-2. Table 8-2:Potential E&S Impacts and Mitigation Measures in Alternative Formula R&D and Performance Testing Stage Factor Impact Mitigation • The laboratory wastewater is discharged to the • The cleaning wastewater and wastewater treatment station at the plant, and then the fire extinguishing test discharged to Yidong Canal and further to Taohuadian wastewater produced during Reservoir once the treatment meets the standard. The Wastewater the experiment is basically water quality of the outlet of the wastewater treatment consistent with the station in the plant shall meet the standards of Table 4 conventional experiment of the of Comprehensive Sewage Discharge Standard existing project. (GB8978-1996). • The chemicals used for the • Evaluate the corrosiveness, toxicity, flammability, and Storage and experiment are generally same reactivity of the newly introduced chemicals according handling of as those used for conventional to the chemical safety instructions. chemicals experiment of the existing • Provide chemical safety information sheet in the project, except for the FPOS- chemical use area or storage area. free fluorosurfactant. 51 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Factor Impact Mitigation • Provide training and appropriate PPE to employees who may expose to the chemicals. • Waste chemicals and materials generated during the • Hire local qualified vendors for the waste transportation Solid waste experiment are generally same and disposal. These vendors need to be qualified by as those generated during the local government agencies, with valid certificates. current experiment. • Before starting the research and development test, evaluate the occupational hazard of the proposed new fluorine surfactant, give priority to the chemicals with less human health risk, and take appropriate occupational hazard protection measures (e. g.: PPE, Occupational • Occupational health hazards of ventilation facilities, etc.) according to the assessment health staff exposure to chemicals. results. • Train employees on occupational hazard protection to understand occupational disease hazard, protective measures, and emergency disposal measures. Provide applicable PPE to staff. Organize the employees to participate in the occupational health checks. • According to the existing safety management system, strengthen the safety training and daily supervision of the staff. • Help employees improve the awareness of wearing Safety • Electric shock, mechanical PPE and provide applicable PPE to employees damage, fire risk. regularly according to the identified safety risks. • Conduct regular inspection on the existing firefighting facilities (fire hydrants, mobile fire extinguishers, etc.) to ensure their effectiveness. • Formula development process may have effects on the occupational health and safety of workers; • project does not add new land, and it will produce no land Social impact; • Strictly implement the above requirements for OHS. • The project is located in the industrial park, and there is no obvious social sensitivity point around it, and there is no impact on the nearby community. Removal and replacement of the production equipment and facilities stage According to the project implementation plan and consultation with management personnel, the Yibin Branch has ten foam extinguishing production lines at present. This pilot project plans to adopt the unified replacement of raw materials, facilities, and equipment, which does not involve large-scale construction activities, and does not involve large-scale entry of construction personnel. Accordingly, the pilot project is expected to have little impact on the surrounding communities. The equipment list for removal and replacement is shown in Table 6-2 in Section 6 of this report. 52 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China The pilot project will have environmental impacts such as wastewater, solid wastes, and noise during this stage. In terms of wastewater, the cleaning wastewater produced during this stage is about 5.6 tons; the domestic wastewater production of the construction personnel is about 45 liters/day. The equipment cleaning wastewater and domestic wastewater will be collected and discharged into wastewater treatment station at the plant through the "A2/O + secondary sedimentation tank + filtration" process, then will be discharged into the Yidong Canal and further to Taohuadian Reservoir, the effluent quality of the plant wastewater treatment station shall meet the requirements of Class I standards in Table 4 of the Comprehensive Sewage Discharge Standard (GB8978-1996). The main pollutants produced are waste equipment and household wastes of construction personnel, which are general solid wastes. The waste equipment generated is about 25-30 tons, and the household waste of the construction personnel is about 1 kg/day. The waste equipment can be treated by a qualified solid waste recycling and disposal as the recyclable industrial solid wastes or other types of solid wastes. The household garbage, after collection, is uniformly transported by the village committee of Xihan village, Zhuge Town to the garbage transfer station of Zhuge Town for treatment. Noise is mainly the construction noise generated during equipment removal and traffic noise generated during equipment transportation. The pilot project shall focus on reducing the noise impact generated during equipment removal on construction personnel and surrounding communities and avoid construction at night. The traffic noise generated during equipment transportation can be controlled through slow driving within the plant area and the sensitive points at the factory entrance. The equipment removal and replacement stage are the stage with highest risk of the health and safety in this pilot project, and the construction contractor shall follow the relevant requirements of the construction and removal of the General Environment, Health and Safety Guidelines of the WB. The main occupational health risks at this stage are the dust, residual chemicals, and noise generated during the removal process. Workers may have health problems from exposure to the hazard factors mentioned above. Therefore, full-time, or part-time occupational health administrators must be designated responsible for occupational health management in the construction stage. Construction personnel shall be trained on occupational health related topics regularly. In the removal of equipment and replacement, workers shall wear corresponding PPE, such as protective masks, protective glasses, and protective gloves according to the hazard factors. In addition, the work site shall also be equipped with emergency spray and eye washing facilities. The main safety hazard at this stage include fire, lifting injury, mechanical injury, electric shock, falling and object strike, vehicle injury, etc. Therefore, full-time, or part-time safety administrators must be designated responsible for site safety management in the construction stage. They shall conduct safety training to the construction personnel regularly, standardize the operation process of the construction personnel, and control the time of continuous work. For high-risk operations 53 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China such as fire, climbing and hoisting, the operation permit system shall be implemented, and appropriate hazard prevention measures shall be taken. Strengthen the supervision of the construction personnel correctly wearing PPE, enhance the maintenance of equipment and tools, to ensure that they are in a good working condition. Environmental risk and environmental emergency response: In the process of equipment removal and cleaning, there is a risk of hazardous waste/chemical leakage. Due to the small content of hazardous waste and chemicals involved, the probability of this risk is low. It is recommended that the residue in the equipment should be cleaned to no residues before the equipment is removed, and the relevant residues and waste solvents and wastewater should be properly disposed of; flames is prohibited during this stage. In case of spill events, only trained personnel with appropriate PPE can handle and clean the spilled hazardous wastes/hazardous chemicals. Untrained personnel shall keep a safe distance from the spill site. The transportation of hazardous wastes/chemicals must be carried out by qualified vendors, and the transportation routes shall avoid sensitive points such as water sources. If the spilled hazardous wastes/chemicals are highly toxic and highly volatile, emergency evacuation and rescue measures shall be arranged immediately. Places contaminated by hazardous wastes/chemicals shall be cleaned up in time, and the wastes generated in the cleaning process shall be treated as hazardous wastes. The pilot project only involves updating the original production equipment polluted by PFOS to the same production equipment without PFOS. The replaced equipment functions and models are basically the same, and the production, operation and inspection processes remain unchanged. Therefore, the environmental and social impacts of equipment removal and replacement mainly exists in the stage of equipment removal and installation. During the production and operation, there will be no additional environmental, occupational health, safety, and social impacts on the pilot project. The potential environmental and social impacts and mitigation measures during the removal and replacement of the equipment in the pilot project are shown in Table 8-3. Table 8-3:Potential E&S Impacts and Mitigation Measures During the Equipment Removal and Replacement Factor Impact Mitigation • The wastewater containing PFOS • The equipment cleaning wastewater and domestic wastewater pollutants generated by shall be collected and discharged into wastewater treatment the equipment cleaning station at the plant. After meeting the standard, it will then be process is about 5.6 discharged into Yidong Canal and further to Taohuadian Wastewater tons; Reservoir. The outlet water quality of the plant wastewater • Domestic wastewater treatment station shall meet the requirements of Class I generated by the standards in Table 4 of the Comprehensive Sewage Discharge construction personnel is Standard (GB8978-1996). about 45 liters / person / day. • After collection, the domestic waste will be uniformly • Domestic waste transported by the village committee of Xihan Village, Zhuge Solid waste generated by the Town to the waste transfer station of Zhuge Town for construction personnel is treatment. The waste equipment can be treated by a qualified about 0.5 tons; solid waste recycling and disposal as the recyclable industrial 54 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Factor Impact Mitigation • Waste materials and solid waste or other types of solid waste according to the actual equipment, about 6 tons. situation. • The pilot project shall explore more environment friendly and less impact approaches for scheme design and technology, • The maximum especially the construction process that may produce noise. construction noise Relevant engineering measures shall be further discussed to Noise generated during reduce the noise impact on construction personnel. equipment removal is • Avoid construction at night. about 80 db. • The equipment transportation vehicles shall drive slowly through the plant area and the sensitive points at the factory entrance. • The pilot project shall establish and improve the occupational health protection mechanism and designate full-time or part- time occupational health administrators to be responsible for • Construction workers are the occupational health management in the construction Occupational exposed to occupational stage. Train the construction personnel on occupational health health hazards caused health-related topics regularly and keep the training records. by dust, chemicals, • The pilot project shall help construction personnel strengthen noise, etc. the awareness of wearing PPE and distribute PPE to the construction personnel of different types of work according to the occupational hazard factors identified. • The pilot project shall establish and improve the production safety mechanism. The production department shall conduct • Potential safety risk production safety related theme training for the construction factors such as fire, personnel and keep the training records. lifting injury, mechanical injury, electric shock, • Standardize the operation process of construction personnel, falling from height and control continuous working hours (e. g. implement rotation Safety object strike, and vehicle working system, arrange rest time and extension time). injury, collapse, noise • Work permit system shall be implemented for high-risk and vibration, dust, and operations (fire, climbing, hoisting, etc.). poor operation, etc. • Strengthen the supervision on the wearing of PPE, and during the construction regularly maintain the equipment and tools to ensure that they process are in good working condition. • Before disassembly of equipment, the residue in the equipment must be cleaned, cleaned without residue before the equipment is removed, and the relevant residues and waste solvents, wastewater shall be properly disposed of. • Ensure that the cleaning site is impermeable, and that all wastewater is collected. • Flames is prohibited during this stage. • Only trained personnel with appropriate PPE can handle and Environmental clean the leaked hazardous wastes/hazardous chemicals. risks and • Leakage of chemicals or Untrained personnel shall keep a safe distance from the environmental hazardous waste during leaking site. emergency cleaning equipment • The transportation of hazardous wastes/chemicals must be response carried out by qualified agency, and the transportation routes shall avoid sensitive points such as water sources. If the leaked hazardous wastes/chemicals are highly toxic and highly volatile, emergency evacuation and rescue measures shall be arranged immediately. Places contaminated by hazardous wastes/chemicals shall be cleaned up in time, and the waste generated in the cleaning process shall be treated as hazardous waste. 55 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Factor Impact Mitigation • Conduct regular monitoring of environmental impact, ensure that noise, exhaust gas and other pollutants meet the standards, and proactively disclose environmental impact monitoring results to the community. • Establish and implement an effective community GRM, and • Social disturbance take the initiative to address complaints from community, caused by transport respond to complaints from the community, and provide timely Social vehicles during feedback to the complainants on the results of the processing, construction; properly resolve residents' complaints and maintain • Noise impact during appropriate records. construction • The speed of material transportation vehicles shall be limited, and the transportation vehicles must take sealing measures. The materials during transportation shall not leak, scatter, or fly along the way, so as to reduce the impact of transportation dust on surrounding residents. Production and operation stage According to the managers consultation, this pilot project only involves replacing the original production equipment contaminated by PFOS material with the same type of equipment excluding PFOS. The replaced equipment functions and models are basically unchanged in production, operation, and inspection process. Therefore, the environmental and social impacts of this pilot project mainly exist during the equipment removal and installation stage. The production and operation process will not produce more environmental, OHS and social impact than the existing production activities. Environmental and social management and mitigation measures can be implemented in accordance with existing management systems. According to the current operation analysis of the Yibin Branch, the possible environmental impact in the trial operation of the pilot project is exhaust gas, wastewater, noise, and solid wastes, etc. The main sources of exhaust gas are workshop exhaust gas (dust and ammonia) and canteen oil fume. The production waste gas is treated through gas collecting hood and water adsorption facilities before it is discharged through 15m exhaust funnel. Canteen oil fume is discharged through 15 m exhaust funnel after being treated by high-efficiency oil fume removal device. Dust emission shall meet the requirements of Class II standard in Table 2 of Comprehensive Emission Standard of Air Pollutants (GB16297-1996). Ammonia emission meets the requirements of Table 2 in Emission Standard of Odor Pollutants (GB14554-1993). Wastewater mainly includes wastewater for cleaning the outer surface of newly purchased packaging barrels, workshop floor and laboratory wastewater, and domestic sewage. Among them, the workshop floor and laboratory wastewater and domestic sewage are treated by the sewage treatment station in the plant through the "A2/O + secondary sedimentation tank + filtration" process. The wastewater for cleaning the outer surface of the newly purchased packaging barrel contains only trace of suspended solids and COD. It is collected and mixed with the effluent from the sewage treatment station. After reaching the standard, it is discharged into Yidong Canal and further into Taohuadian Reservoir. The effluent quality shall meet the requirements of Class I standard in Table 4 of Integrated Wastewater Discharge Standard (GB8978-1996). 56 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China The noise of the operation stage is mainly generated by mixer, filling machine, vacuum pump, air compressor and other noisy equipment. As the equipment of the pilot project are basically same as WFS existing production project, there is no additional noise equipment, thus the noise impact is basically same as the current situation. It is suggested that employees strictly follow the equipment operation manual to avoid additional mechanical noise caused by mechanical failure. The enterprise will carry out noise monitoring at factory boundaries regularly to ensure that the noise monitoring results of north boundary meets the Class 4a standards (namely, 70dB in the daytime and 55dB at night) of Environmental Noise Emission Standard of Industrial Enterprises (GB 12348-2008); and the noise monitoring results of boundaries of east, south, and west meet the Class 3 standard of Environmental Noise Emission Standard of Industrial Enterprises (GB 12348-2008). The solid wastes generated during the operation stage is mainly waste packaging buckets, waste packaging bags and household wastes. The waste packaging barrels and bags produced are about 7.1 tons per year, which will be collected and handed over to raw material manufacturers for recycling. The empty barrels of gasoline and isopropanol are reused; The amount of dust and other sediment generated from the circulating water tank for washing the outsides of packaging buckets is about 0.8 kg per year. After collection, it is uniformly transported by the village committee of Xihan Village, Zhuge Town to the waste transfer station of Zhuge Town for treatment. The sludge produced by the sewage treatment station is about 1.5 tons per year. After collection, it is uniformly transported by the village committee of Xihan Village, Zhuge Town to the waste transfer station of Zhuge Town for treatment. After collection, the domestic garbage will be uniformly transported by the village committee of Xihan Village, Zhuge Town to the garbage transfer station of Zhuge Town for treatment. During the trial operation of the pilot project, occupational hazard factors on the work site include noise and chemicals. Since low noise equipment has been considered in the equipment selection, and noise reduction and isolation measures are planned during the installation process, the noise level during the operation of the pilot project is expected to be similar to the current noise level. Yibin Branch has equipped its employees with PPE as protective masks, protective gloves etc. It is suggested to provide protective glasses. The site workers can further reduce the impact of workplace noise impact by wearing earplugs. In terms of chemicals, the chemicals for the production are general chemicals, and the production processes will be conducted in airtight containers and pipelines, therefore the risks of site workers in direct contact with chemicals are relatively low. The enterprise will test the occupational hazard factors once a year, organize regular occupational health examination for employees, and conduct a retrospective evaluation of occupational diseases every three years The main safety risks in this stage of pilot project include mechanical injury, electric shock, falling and fire accidents, which are the same as the existing project safety risks, so they can be controlled in accordance with the existing safety management system. During the pilot project trial operation stage, it is recommended to strengthen the training of site workers, enhance the maintenance of equipment and tools, to ensure that they are in good working condition. The site workers shall carry out safety self-inspection before starting the daily production and organize a comprehensive safety inspection every month to ensure timely detection of potential safety issues and complete rectification. Update the emergency plan for production safety accidents timely, 57 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China provide emergency rescue materials (such as fire sand, oil absorption cotton, fire extinguishers, etc.), and organize relevant drills. The environmental emergencies during the trial operation of the pilot project may be the chemical spills. The emergency method is basically the same as that in the equipment removal and cleaning stage. In case of spill, only those who wear appropriate protective clothing and equipment and have received training can deal with and clean the spilled hazardous wastes/chemicals. Untrained personnel shall keep a safe distance from the spill site. The transportation of hazardous wastes/chemicals must be carried out by qualified agencies, and the transportation route shall avoid sensitive points such as water sources. If the spilled hazardous wastes/chemicals are highly toxic and highly volatile, emergency evacuation and rescue measures will be arranged immediately. The places polluted by hazardous wastes/chemicals will be cleaned in time, and the wastes generated in the cleaning process will be disposed of as hazardous wastes The environmental emergencies during the pilot operation of this pilot project may be the chemical spills, and the emergency response method is basically the same as the equipment removal and cleaning stage. Once the spill occurs, only trained personnel with appropriate PPE can handle and clean the spilled hazardous wastes/hazardous chemicals. Untrained personnel shall keep a safe distance from the spill site. The transportation of hazardous wastes/chemicals must be carried out by qualified vendors, and the transportation routes shall avoid sensitive points such as water sources. If the leaked hazardous wastes/chemicals are highly toxic and highly volatile, emergency evacuation and rescue measures shall be arranged immediately. Places contaminated by hazardous wastes/chemicals shall be cleaned up in time, and the waste generated in the cleaning process shall be treated as hazardous waste. 58 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 8.2 ENVIRONMENTAL AND SOCIAL MONITORING PLAN According to the environmental and social impact analysis of the pilot project in Section 8.1, the corresponding environmental and social monitoring plans for the pilot project are shown in Table 8-4. Table 8-4:E&S Monitoring Plan Required Project Monitorin Monitoring Characteristic Applicable monitoring stage g factor contents pollutants Standard frequency Integrated Formula Water quality at Flow rate, pH, COD, wastewater Wastewat R&D the main sewage BOD5, NH3-N, SS, discharge standard Once at mid-stage er stage outlet of the plant TP, TN (1996) Table 4 Class I Standard Integrated Water quality at Flow rate, pH, COD, wastewater Once at Wastewat the main sewage BOD5, NH3-N, SS, discharge standard construction peak er outlet of the plant TP, TN (1996) Table 4 Class time I Standard Emission Standard Equipmen for Industrial t removal Equivalent Enterprise Noise at Once at and Noise Boundary noise continuous noise Boundary construction peak replaceme value (GB12348-2008) time nt stage Class 3 and 4a Standard Whether waste Pollution Control waste equipment and Standards for Once at the Solid equipment, domestic garbage Hazardous Waste construction period waste domestic are treated with Storage (GB18597- ends garbage compliance 2001) Integrated Water quality at Flow rate, pH, COD, wastewater wastewate the main sewage BOD5, NH3-N, SS, discharge standard Once at mid-stage r outlet of the plant TP, TN (1996) Table 3 Class III Standard Emission Standard for Industrial Equivalent Enterprise Noise at Project Noise Boundary noise continuous noise Boundary Once at mid-stage trial value (GB12348-2008) operation Class 3 and 4a stage Standard Whether waste Pollution Control Waste packaging packaging bucket Standards for Solid bucket, domestic and domestic Hazardous Waste Once at mid-stage waste garbage garbage are treated Storage (GB18597- with compliance 2001) Occupatio 8h equivalent sound Occupational Workplace noise Contact Limit for Once at mid-stage nal health level Workplace 59 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Required Project Monitorin Monitoring Characteristic Applicable monitoring stage g factor contents pollutants Standard frequency Hazardous Factors - Part 2 Physical Factors (GBZ 2.2- 2007) Integrated emission standard of air Organized pollutants (1996) Dust, Ammonia Once a year discharge Emission standard for odour pollutants (1993) Exhaust Gas Integrated emission standard of air Non-organized pollutants (1996) Dust, Ammonia Once a year discharge Emission standard for door pollutants (1993) Integrated Water quality at Flow rate, pH, COD, wastewater Wastewat the main sewage BOD5, NH3-N, SS, discharge standard Once a year er outlet of the plant TP, TN (1996) Table 3 Class Project III Standard official operation Emission Standard phase for Industrial Equivalent Enterprise Noise at Noise Boundary noise continuous noise Once a year Boundary value@ (GB12348-2008) Class III Standard Whether waste Pollution Control waste packaging packaging bucket Standards for Solid bucket, domestic and domestic Hazardous Waste Once a year waste garbage garbage are treated Storage (GB18597- with compliance 2001) Occupational Contact Limit for Workplace Occupatio 8h equivalent sound Workplace noise Hazardous Factors - Once a year nal health level Part 2 Physical Factors (GBZ 2.2- 2007) Communit Number of Once every half y community N/A World Bank year The whole grievance grievances life cycle Staff Number of staff Once every half N/A World Bank grievance grievances year 60 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 8.3 CAPACITY BUILDING During the project manager consultation, Stantec has found that Langchao Fire Technology does not know enough about the relevant environmental and social requirements, especially the requirements of the safeguard policy of the WB. In the execution of the project, the ability of the project implementation agency and the construction contractor shall be improved to ensure the effective implementation of the ESMP, so it is necessary to strengthen the capacity building of the organization in the process of the pilot project. The annual training plan to be established in this pilot project is based on the domestic laws and regulations on the environment, OHS and social management, as well as the relevant policy requirements of the FECO and the WB. The main contents of the technical training shall include: • • Environmental protection laws and regulations and social laws, regulations and policies related to the pilot project; • • ESIA procedures; • • Potential environment problems caused by the pilot project • • Safeguard policy of the WB. • • Convention of Stockholm Key personnel to be trained for this pilot project shall include Langchao Fire Technology Administrative Department, Production Department, Technology Department, and other departments responsible for managing the environmental and social impact of the Yibin Branch. In addition, all employees, temporary workers, contractors, construction personnel and maintenance personnel of the Yibin Branch will also be trained. It is shown in Table 8-5 of the capacity building and training plan of this pilot project. Table 8-5:Capacity Building and Training Plan Number of Days of Topic Training Target Training Contents Trainees Training Langchao Fire • Related E&S regulations Requirements Technology, Yibin • E&S policy and plan of policy, law, Branch, temporary • World Bank Safeguards About 75 1 and regulation. workers, contractors, • E&S management framework suppliers etc. • Stockholm Convention Environmental Langchao Fire Impacts and Technology, Yibin • Langchao Fire Technology E&S Social About 67 1 Branch, temporary management procedure Assessment workers Procedure • E&S management requirements during Implementation Langchao Fire construction of environment Technology, Yibin • Internal monitoring, external monitoring, and social About 70 1 Branch, temporary and internal auditing management plan workers, contractors • Implementation of E&S management plan • Emergency response plan and Emergency Langchao Fire measures About 70 1 61 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Number of Days of Topic Training Target Training Contents Trainees Training Response Technology, Yibin Measures Branch, temporary workers, contractors 62 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 9. STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 9.1 OBJECTIVES Public consultation and information disclosure is a two-way communication between the project party and the public, an important mechanism for reducing the risk and social impact of the project, and an important way of project information transparency and public engagement. Objectives of public engagement and information disclosure include: • Identifying stakeholders and establishing and maintaining constructive contact with them. • Assessing the Project related benefits and supports provided by stakeholders and considering stakeholders’ views on the Project design and environmental and social management. • Providing an effective and inclusive means of engagement that fully involves all parties affected by the Project in the discussion of issues that may affect them throughout the project cycle • Ensuring that appropriate project information on environmental and social risks and impacts is disclosed to stakeholders in a timely, understandable, and appropriate manner. 9.2 ENGAGEMENT PROCESS AND FINDINGS Based on the nature of the project, findings of field work, and interviews with relevant agencies, the stakeholders identified in the pilot project include: the project owner (Langchao Fire Technology), the project office (FECO), the relevant government agencies (including Zhuge Town People's Government, Zhuge Town Environmental Protection Office, and Zhuge Town Land Office), the project workers, contractors, Xihan Village committee and the affected land leaseholders, etc. The stakeholder engagement process conducted during this environmental and social survey was mainly summarized as follows: • Consulting with relevant management personnel of Langchao Fire Technology to understand the Project background, scale, impact situation, labour management, etc. • Visiting government departments, including Zhuge Town People's Government, Environmental Protection Office, Land Office, to understand the current environmental status of the Project, environmental regulations requirements, frequency of environmental supervision and environmental complaints, and to understand the land use planning and relevant policies on the Project. • Consulting the Project workers to understand labour working conditions, welfare benefits, labour management, etc. • Visiting the Xihan Village Committee and consulting village officials to understand the basic situation of the village, the impact of the project's land leases, the type of leased lands, rental payment standards, land rental distribution, etc. 63 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China • Randomly consulting affected land leaseholders to understand the impact of the project, rent payment, satisfaction with the project, as well as opinions and suggestions. • Visiting surrounding hotels to understand the environmental and social impact of the project on surrounding hotels • FECO follows up the environmental and social audit with the enterprise, discusses the rectification plan with the enterprise management level, and monitors information disclosure, public engagement, and grievance. Based on the consultation with stakeholders, the main findings reported by stakeholders during this environmental and social survey are shown in Table 9-1. Comments and suggestions from various stakeholders have been incorporated into the environmental and social management plan. Table 9-1:Consultation Conclusion with the Stakeholders Operation No. Stakeholders Consulted comments and advice Solution time • Langchao Fire Technology is a famous local Zhuge Town enterprise which is regarded as a star 1 People’s 2021.7 enterprise and has built a good relationship / Government with the local government and surrounding communities. • It is confirmed that the EIA report completed in 2014 by Langchao Fire Technology has obtained corresponding approval and acceptance of environmental protection completion; • As confirmed with Zhuge Township EPB, Zhuge Town since the Project only involves in changing of Environmental one raw material, there is no need to conduct 2 2021.7 / Protection a new EIA or EIA update; Office • The Environmental Protection Office Relevant regulates the environmental impact of governmental companies through daily irregular inspections; departments • The environmental protection bureau never receives any environmental grievance from the surrounding communities on the facilities of Langchao Fire Technology. • Before 2009, the land used for the project was mainly agricultural land. Before Langchao Fire Technology leased the land, the local village committee had gone through the formalities of converting agricultural land. Zhuge Town 3 2021.7 • Langchao Fire Technology has signed lease / Land Office agreement with Xihan Village and have obtained the collective land use right certificate, which is in accordance with the requirement of local land use plan and regulations. 64 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Operation No. Stakeholders Consulted comments and advice Solution time • Langchao Fire Technology have not signed labour contract with 10 temporary workers; • According to records of salary and The enterprise attendance, situations of overtime and has resigned Project workers (currently 4 2021.7 continuous work are observed; contracts with employed) • Langchao Fire Technology has established temporary internal GRM but did not form written records workers. of workers’ comments and reflections and the handling results. • Langchao Fire Technology has signed land lease agreement with Xihan Village Committee and pays the rent according to the agreement annually. Currently, the rent for the 5 Xihan Village Committee 2021.7 / next year has been paid in October of 2020. • The village committee distributes the rent to the corresponding affected farmers without withdrawal and retaining. • Affected lease holders receive the rent every year. The rent paid in October of 2020 has been distributed to them; Affected lease holders of 6 2021.7 • The affected lease holders express that the / Xihan Village income from lease rent is higher than that of farming and are satisfied with leasing their land. • The operation of the existing project facilities has no impact on the surrounding hotels. Duleyuan Hotel has been running for more than ten years and are not affected by the 7 The surrounding hotels 2021.7 environmental impact brought by Langchao / Fire Technology; • Duleyuan Hotel has been running in good condition and maintain a good neighbourhood relationship with Langchao Fire Technology. • Langchao Fire Technology has done the first- round publicity of its ESMP on its website The first-round publicity and (http://www.lylangchao.com/) in 12.15, 2020. 8 2021.12 / feedback collection of ESMP The publicity picture is illustrated in in Figure 9-1. No feedback is received during the publicity period. 65 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Figure 9-1:The First Round of Online Publicity Screenshots 9.3 PUBLIC ENGAGEMENT AND INFORMATION DISCLOSURE IN THE NEXT PHASE The plan for the next phase public engagement and information disclosure is as follows: • Paying the rent for leased land on time and keeping records; • Building community GRM, disclosing it to the communities, and keeping records; • Disclosing the project to the surrounding communities to understand their attitude and comments on the project, and keeping records; • Langchao Fire Technology plans to establish the second-round publicity of the environmental and social management plan on the company’s website and the notice boards in the factory after the approval of the WB. 9.4 COMMUNITY GRIEVANCE REDRESSING MECHANISM Grievance mechanism: During the preparation and operation of the project, the Yibin Branch established a multi-level grievance channel to timely understand and resolve the impacts and problems of the project to the affected company’s employees (referred as “the affected parties�?) and other stakeholders, and to ensure the affected party’s requirement for information disclosure and wide public engagement (not limited to the surrounding communities). The details are as follows: 66 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China The Yibin Branch plans to assign a coordinator (Ms Li) from the development stage of the project, who will be responsible for receiving grievances onsite, via disclosed telephone number/WeChat account/website/onsite information board, investigating and addressing all external grievances arising from or related to the project activities. The coordinator will collect and record all grievance through registration form and keep records in grievance database. The grievance procedures include the following steps, and the flow chart of grievance is illustrated in Figure 9-2: • The first stage: The affected person/community may address their grievances and complaints to the coordinator of their enterprises either orally or in written forms. Their enterprises shall keep a written record for the oral grievances and provide a clear reply within two weeks. • The second stage: If the affected people/community are unsatisfied with the decision of stage 1, they can submit their grievances to FECO. During the operation of the project, the GRM at the level of the enterprises and the local project office is the main channel for resolving the project grievances. The national project office shall make joint efforts with the local project offices/engaged enterprises and the affected people/communities, to seek solutions for problems under the circumstances that the local project office/enterprises cannot resolve or there is no project-level GRM. • The third stage: If the affected people/communities are still unsatisfied with the above decision, they can appeal to administrative bodies with jurisdiction level by level for arbitration, in accordance with “Administrative Procedure Law of the People’s Republic of China�?, after receiving the grievance handling decision. • The fourth stage: If the affected parties are still not satisfied with the arbitration decision, they may, after receiving the arbitration decision, bring a suit to the civil court in accordance with the Civil Procedure Law. 67 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Figure 9-2:Flow Chart of the GRM for PFOS Project 68 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China The contact details for the community grievance of this pilot project are as follows: Implementation unit contact: Zhuqing Li Cell phone: 15036375530 E-mail: 155281909@qq.com Address: Luoyang Langchao Fire Technology Co. Ltd., 250 m from the crossing of Gulong Road and Erguang Highway, Luolong District, Luoyang City, Henan Province For anonymous grievances, we should attach the equal importance as other grievances, keeping confidentiality of the information of the appellant, and put forward solutions to the grievances. The grievance shall be handled with records within 7 days. FECO will track the GRM and keep records. 9.5 REPORTING MECHANISM The Project shall submit reports on the implementation of ESMP. Table 9-2 indicates the report submission plan of the project. Table 9-2:Report Submission Plan Report Preparation Time or Contents Acceptance agency type agency frequency Internal Project activity progress, 1 time (at Construction Implementation agency monitoring problem rectification completion of unit/contractor (Langchao Fire Technology) report progress, file record, etc. construction) Pilot project Project activity progress, 1 time (during the Internal group of problem rectification Implementation agency project operation monitoring Langchao Fire progress, file record, etc. (Langchao Fire Technology) period) report Technology External Environmental and social 2 times (one monitoring performance, problem during the middle Implementation agency report External rectification progress, of construction (Langchao Fire Technology); during monitoring unit implementation of social period, one at the FECO construction and environmental completion of period management plan, etc construction) External Environmental and social 1 time (three monitoring performance, problem months after the Implementation agency report External rectification progress, completion of (Langchao Fire Technology); during monitoring unit implementation of ESMP, construction) FECO operation etc period 69 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 10. ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN According to the section 5 (E&S status survey) and the section 8 (E&S impact assessment on pilot project), the ESMP for this pilot project is designed as follows (Table 10-1). Table 10-1:Environmental and Social Management Plan Cost Potential Issues Management Requirements Responsibility Supervisor Estimate • Langchao Fire Technology shall contact the local Housing and Urban-Rural Development Bureau and prepare corresponding fire protection completion acceptance The Yibin FECO (project office), documents according to relevant regulations. Branch, Luoyang Housing and EHS approval / • The Yibin Branch has issued fire completion acceptance work Langchao Fire Urban-Rural schedule and has promised to perform according to the Technology Development Bureau schedule. The completion acceptance is planned to be done by the end of September of 2022. • Langchao Fire Technology shall contact the local Ecological and Environmental Bureau and prepare emergency plans of environmental and production safety events for government departments for reference according to relevant regulations. FECO (project office), It is also necessary to conduct relevant drills annually and Zhuge Town The Yibin keep the drill records. Environmental Emergency plan Branch, The existing • The Yibin Branch has entrusted a third-party organization to Protection Office, / and drill Langchao Fire project prepare emergency plans for environmental emergencies. Luoyang Work Safety Technology rectification The retrospective evaluation of work safety emergency plan Supervision and period is also included in the plan, and it is expected to complete the Administration Bureau preparation of the plan text in February 2022. After the preparation of the two plans, a drill will be arranged respectively. • Langchao Fire Technology shall entrust a qualified third-party Occupational institute to carry out the identification of occupational health health: hazard factors and the detection of occupational disease Occupational- hazard factors. Regular occupational health examination The Yibin disease- should be conducted for employees exposed to the FECO (project office), Branch, inductive factor occupational-disease-inductive factors according to the Luoyang Municipal / Langchao Fire testing and identified factors. Health Commission Technology occupational • The Yibin Branch has planned to entrust a third-party institute health to carry out an occupational health status evaluation and a examination detection of occupational-disease-inductive factors, which are expected to be completed by March 2022. Occupational 70 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Cost Potential Issues Management Requirements Responsibility Supervisor Estimate hazard declaration and occupational health examination will be carried out after completion of the evaluation. • Langchao Fire Technology shall contact the local Quality Supervision Bureau and apply for registration certificate for forklift truck according to relevant requirements. A qualified third-party institute shall also be entrusted to conduct regular The Yibin forklift testing. In addition, Langchao Fire Technology shall Special Branch, obtain special equipment operating license for forklift FECO (project office) / operations Langchao Fire operators. Technology • The enterprise is reapplying for forklift license, special equipment operation license and entrusting regular inspection of forklift. It is expected to be completed in four months. Environment: • The laboratory wastewater is collected and discharged to the the cleaning wastewater treatment station in the factory. After reaching the wastewater and The Yibin standard, it is discharged into Yidong Canal and then into experimental Branch, CNY Taohuadian reservoir. The effluent water quality of the wastewater Langchao Fire 10,000/time treatment station shall meet the requirements of table 4 in the produced during Technology Comprehensive Sewage Discharge Standard (GB8978- the experiment 1996) process • Assessment of the occupational health risk shall be done on FECO (project office), the environmentally friendly foaming agent before the start of Zhuge Town Occupational the research and development test, and take appropriate Environmental Development health and occupational hazard prevention measures (e.g., PPE, Protection Office, stage of safety: ventilation facilities, etc.) based on the assessment results. The Yibin Human Resources and substitute occupational • A qualified occupational health technological service institute Branch, Social Security Bureau foam fire CNY 50,000 health hazard of Langchao Fire of Yibin District, extinguisher should be entrusted to conduct regular test for occupational the workers disease hazardous factors at workplaces. Technology Luoyang City, Luoyang exposed to • Training related to occupational disease hazards prevention Municipal Health chemicals shall be conducted to employees to inform them of Commission occupational hazards, protective measures, and emergency measures. • Enhancement is done on the safety training and daily Safety: risk of supervision of employees according to the existing safety The Yibin electrical shock management system. Branch, and mechanical / • Enhancement shall be done on the awareness of PPE Langchao Fire injury during wearing, and regular supply of PPE should be guaranteed for Technology development. employees according to identified safety risks. Equipment Environment: • The cleaning wastewater and domestic wastewater are The Yibin FECO (project office), / cleaning, wastewater processed by the wastewater treatment station in the factory, Branch, Zhuge Town 71 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Cost Potential Issues Management Requirements Responsibility Supervisor Estimate dismantling, generated and then discharged into Yidong Canal, and then into Langchao Fire Environmental installation during cleaning, Taohuadian Reservoir. The effluent quality should meet the Technology, Protection Office, stage dismantling and requirements of table 4 in the comprehensive Sewage Contractor Human Resources and installation of Discharge Standard (GB8978-1996). Social Security Bureau equipment of Yibin District, (cleaning Luoyang City, Luoyang wastewater, Municipal Health domestic Commission wastewater) • This pilot project should explore more environmentally Environment: friendly and less influential methods in terms of scheme noise generated design and technology, especially in the process construction during cleaning, which may produce noise. Relevant engineering measures / dismantling and should be further discussed to mitigate the impact of the installation of project on the surrounding communities. equipment • Night construction should be avoided. • Transporting vehicles should run at a low speed. Environment: solid wastes generated • After collection, the household garbage will be transported to during cleaning, the garbage transfer station of Zhuge Town by the village dismantling and Committee of Xihan Village. installation of • The dismantled and cleaned equipment can be entrusted to CNY 5,000 equipment a qualified solid waste recycling and disposal company (municipal according to the recyclable industrial solid wastes or other wastes and types according to the actual situation. waste equipment) • The Yibin Branch or Langchao Fire Technology shall sign EHS agreements with construction contractor, equipment Occupational suppliers, etc., and clarify the responsibility and duty of both health: sides. occupational • The pilot project shall designate a full-time or part-time health hazards occupational health manager to be responsible for caused by the occupational health management during the construction / exposure of phase. Regular training on occupational health related topics construction for construction personnel. workers to dust, chemicals, • The pilot project should strengthen the awareness of the noise, etc. construction personnel to wear personal articles and distribute PPE to the construction personnel of different work types according to the identified occupational hazard factors. 72 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Cost Potential Issues Management Requirements Responsibility Supervisor Estimate • The Yibin Branch or Langchao Fire Technology shall sign EHS agreements with construction contractor, equipment suppliers, etc., and clarify the responsibility and duty of both sides. • The pilot project shall establish and improve the safety production mechanism, and the production department shall carry out safety production related subject training for construction personnel and keep training records. • The operation process of the construction personnel shall be regulated, the continuous working time shall be controlled (such as implementing the rotation system, arranging rest Safety: potential time, and stretching time). safety risk • Good field cleaning mechanism shall be conducted. Wastes factors during and leakage shall be cleaned regularly. Dust reduction construction measures during construction are recommended. such as fire, • Warning signs should be posted at construction sites where lifting injury, there are risks of fire, electric shock, falling, and mechanical mechanical injury. injury, electric • The pilot project should strengthen the awareness of the CNY 5,000 shock, falling construction personnel to wear personal equipment, and object distribute PPE to the construction personnel of different types strike, fall/slip, according to the identified safety hazard factors, and ensure vehicle injury, the correct use of construction personnel. collapse, noise • Work permit management procedures shall be implemented and vibration, for high-risk work, such as fire work and climbing work. dust, and poor • Regular inspection and maintenance of mechanical operation equipment, working vehicles, etc., should be conducted to ensure that only equipment or vehicles (e.g., forklifts and lifting equipment) that meet the requirements of regulations are used, and operators have relevant licenses (e.g., special equipment operator's license). • Planning and zoning of vehicle traffic, mechanical operations, walking areas, controlling vehicle traffic through one-way traffic rules, setting speed limits, and directing traffic on site by trained signalmen (wearing conspicuous vests or coats). • It is necessary to formulate emergency plans, organize emergency teams, equip them with emergency supplies, and carry out training and drills • Regular monitoring on environmental impacts should be done Social: Impacts to ensure the discharge of noise, waste gas, etc. meet the of pollutants on / standard. Monitoring results of environmental impacts shall the surrounding be disclosed to the public. 73 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Cost Potential Issues Management Requirements Responsibility Supervisor Estimate communities • It is necessary to implement and operate an effective community GRM and actively disclose the project GRM to the community. Grievance redressing and its results should be reflected to appellant in time. Records should be kept of every grievance redressing. • The speed of the transport vehicles in the factory shall be limited, and the transport vehicles shall be sealed. The materials shall not leak, scatter, or fly in the air along the way, so as to reduce the impact of transportation dust on the surrounding communities. Environmental risk: there are • Before dismantling, the residue in the equipment shall be risks including cleaned, and the equipment shall be dismantled after no leakage of residue is cleaned, and the relevant residue, waste solvent wastewater and wastewater shall be properly disposed of; Dismantling containing activities shall be carried out by professional personnel / residual wearing protective clothing and equipment. chemicals and • Ensuring that anti-seepage measures of the cleaning site are PFOS during the implemented, and all the cleaning wastewater is collected. cleaning • Fire is prohibited during the equipment dismantling. process. • Only trained personnel wearing appropriate protective The Yibin FECO (project office), clothing and equipment should handle and clean spilled Branch, Zhuge Town chemicals. Untrained personnel should keep a safe distance Langchao Fire Environmental from the spill site Technology, Emergency • The transport of spilled chemicals shall be carried out by Protection Office Contractor response: there qualified agencies, and the transport route shall avoid are risks of sensitive points such as water sources. If the spilled chemical hazardous waste/chemicals are highly toxic and volatile, leakage and emergency evacuation and rescue measures should be / inappropriate arranged immediately. Areas contaminated by hazardous operation can wastes/chemicals should be cleaned up in a timely manner cause poisoning and the waste generated in the cleaning process should be or injury. disposed of as hazardous wastes. • If any person is injured, the injured person should be treated on the spot in accordance with the corresponding chemical first aid method, and then sent to the hospital for further treatment. Operation Environmental The Yibin FECO (project office), / 74 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Cost Potential Issues Management Requirements Responsibility Supervisor Estimate stage of the management • The pilot project shall maintain and improve the existing Branch, Zhuge Town pilot project environmental protection mechanism and designate a full- Langchao Fire Environmental CNY time or part-time environmental administrator to be Technology protection 10,000/time responsible for the environmental management of the pilot project. Regular training should be carried out on environment-related topics for all staff and keep training records. • In this pilot project, a qualified third-party testing institution shall be entrusted to conduct regular testing of the total outlet of wastewater produced in the factory area, and the effluent quality shall meet the requirements of the first class in Table 4 of the Comprehensive Sewage Discharge Standard (GB8978-1996). • The organized and unorganized waste gases of the pilot project shall be regularly tested by qualified third-party testing institutions, and the pollutants shall meet the requirements of the comprehensive emission standard of air pollutants (1996) and the emission standard of malodorous pollutants (1993). • This pilot project shall further strengthen the noise control on CNY the east and west sides of the factory boundary, and a 10,000/time qualified third-party testing institution shall be commissioned to conduct regular testing, and the noise results shall meet the requirements of the environmental noise emission Standard (2008) for the industrial enterprise factory boundary. • Solid wastes generated in the pilot project include waste packaging barrels and bags, sediments generated from the circulating pool outside the washing packaging barrels, sewage treatment station sludge, household garbage, and hazardous waste. General solid wastes should be entrusted to a qualified third-party organization for collection and treatment. The third-party company qualified for hazardous waste disposal shall be entrusted to carry out outbound transportation and treatment of hazardous wastes. • The pilot project shall maintain and improve the existing Health: occupational health management mechanism and designate The Yibin exposure of FECO (project office), full-time or part-time occupational health managers to be Branch, workers to Luoyang Municipal / responsible for the occupational health management of the Langchao Fire occupational Health Commission pilot project. Conduct regular training on occupational health Technology health hazards related topics for all staff and keep training records. 75 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Cost Potential Issues Management Requirements Responsibility Supervisor Estimate from noise and • The pilot project should entrust the qualified occupational CNY chemicals. health technical service organization to carry out the 10,000/time detection of occupational-disease-inductive factors. • The pilot project should entrust qualified organizations to provide regular occupational health examination for / employees exposed to occupational hazards. Complete the declaration of occupational hazards. • The pilot project should strengthen the awareness of employees' wearing of personal articles, issue PPE to employees of different jobs on a regular basis according to CNY 10,000 the identified occupational-disease-inductive factors, and post warning labels of occupational-disease-inductive factors in the workshop. Safety: mechanical FECO (project office), injury, electric • Safe production management mechanism should be furtherly Luoyang Housing and The Yibin shock, falling, improved and regular training of safe production should be Urban-Rural Branch, fire, and other carried out for all employees. Development Bureau, CNY 50,000 Langchao Fire safety risk • Emergency plan for production safety accidents should be Luoyang Work Safety Technology factors in the updated and regular training and drills shall be organized. Supervision and production Administration Bureau process. • The pilot project should meet the national regulations and laws and sign labour contracts with temporary workers within The Yibin one month from the start of working. Recruitment Branch, • Grievance mechanism for the employees (including / management Langchao Fire contracted workers and temporary workers) of the pilot Technology project. Comments, feedbacks, and worries raised by employees shall be redressed and recorded in written forms. FECO (project office), Human Resources and • The pilot project shall keep tracking the rent payment status Social Security Bureau / of land lease and keep records. of Yibin District, • The pilot project should establish a social management Luoyang City mechanism and designate full-time or part-time community The Yibin Social liaison officers to be responsible for community Branch, / management communication and management of Langchao Fire Langchao Fire Technology. Technology • The pilot project should establish and implement an effective community GRM and take the initiative to disclose it, deal with / the complaints raised by the community, and feedback the 76 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Cost Potential Issues Management Requirements Responsibility Supervisor Estimate results to the complainants in time, so as to properly solve the complaints of the communities. • The pilot project plans to carry out two rounds of publicities of ESMP on the company’s website and notice board within / plant area, respectively, in December 2021. • The pilot project shall carry out regular monitoring on see environmental impacts to ensure discharge of pollutants such environmental as noise, exhaust gas, etc. meet the standard. The management environmental impact monitoring results shall be disclosed to part the communities to resolve their worries. • Only trained personnel wearing appropriate protective clothing and equipment should handle and clean chemical Emergency spills. Untrained personnel should keep a safe distance from reaction: There the spill site. are risks of • The transport of spilled chemicals shall be carried out by chemical qualified units, and the transport route shall avoid sensitive leakage in trial The Yibin points such as water sources. If the spilled hazardous operation and Branch, FECO (the project waste/chemicals are highly toxic and volatile, emergency formal Langchao Fire office), Zhuge Town evacuation and rescue measures should be arranged / production Technology, Environmental immediately. Areas contaminated by hazardous operation, Waste disposal Protection Office wastes/chemicals should be cleaned up in a timely manner improper unit and the waste generated in the cleaning process should be operation will disposed of as hazardous wastes. lead to poisoning and • If there are employee injuries, on-site treatment should be injury. conducted following the first aid approaches of the corresponding chemicals. The injured employees should be sent to hospital for further treatment after the first aid. 77 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 11. COST ESTIMATION The cost of implementing the ESMP mainly includes the cost of wastewater treatment, equipment updating and debugging, training, preparing risk assessment and monitoring of the ESMP implementation. Tasks 4, 5, 6 and 7 do not involve the cost related to the ESMP. Table 11-1 shows the details of cost estimation. Table 11-1:E&S Budget of the Project Task Subject Sum (CNY) Task 1 Laboratory wastewater treatment fee 20,000 Wastewater treatment fee 30,000 Task 2 Waste equipment disposal fee 10,000 PFOS/PFOA testing equipment fee 1,200,000 Other testing equipment fee 634,700 Task 3 Stuff training fee 10,000 Solid wastes disposal fee 20,000 Wastewater treatment fee 100,000 E&S management and monitoring report 150,000 preparation Task 8 ESMP implementation fee (including GRM 160,000 implementation fee) ESMP preparation 100,000 Total 2,434,700 78 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 12. ANNEX Annex 1: List of Consulted Personnel On July 23, 2021, Stantec interviewed and consulted relevant stakeholders for the purpose of completing the environmental and social assessment. Please refer to the list below. Stantec is grateful for the cooperation of these consulted people during the consultation: No. Name Department Position 1 Mr. He Langchao Fire Technology the Minister 2 Ms. Li Langchao Fire Technology the Director 3 Ms. Zhang Langchao Fire Technology HR manager 4 Mr. Zhang Zhuge Town Deputy mayor 5 Mr. Zhang Zhuge Town (Land Office)) the Director Zhuge Town (Environmental 6 Mr. Zhao the Director Protection Office) community committee 7 Mr. Song Xihan Village member 8 Mr. Han Xihan Village villager of group 2 9 Ms. Han Xihan Village villager of group 1 79 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Annex 2: Land Certificate 80 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Annex 3: Land Lease Agreement Note: The annual rent of CNY 1533.78 /mu in this agreement is only the land rent of the year (2009). According to the confirmation of the person in charge of Langchao Fire Technology and the cadres of Xihan Village Committee, the land rent standard of each year thereafter is calculated according to the grain yield and the grain price, that is, the yield is 1000 kg of wheat and corn, respectively. Grain prices are subject to that announced by the local price bureau at the end of every August. 81 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China 82 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Annex 4: Drinking Water Quality Test Report Referred Standard Limits Detection Testin Items Results of Drinking Water Hygiene point g Time Standard (GB5749-2006) pH 7.9 6.5~8.5 Total bacteria (CFU/ml) Not tested 100CFU/mL Total coliform (MPN/100ml) Not tested Should not be tested E. Coli (MPN/100ml) Not tested Should not be tested Thermotolerant coliforms Not tested Should not be tested (MPN/100ml) As (µg/L) <1.0 0.01 µg/L Cr VI (mg/L) <0.004 0.05 µg/L Pb (µg/L) <2.5 0.01 µg/L Drinking 2021.12. Hg (µg /L) <0.1 0.001 µg/L water in 16 factory kitchen (08:00) Se (µg/L) <0.4 0.01 µg/L Cyanide (mg/L) <0.002 0.05 mg/L Flouride (mg/L) <0.006 1.0 mg/L Chloride (mg/L) 2.42 250 mg/L Chroma (º) <5 15 º Turbidity (NTU) <0.5 1 NTU Odour None No odour Visible objectives None None Cd (µg/L) <0.5 0.005 µg/L Al (µg/L) <40 0.2 µg/L 83 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Referred Standard Limits Detection Testin Items Results of Drinking Water Hygiene point g Time Standard (GB5749-2006) Fe (µg/L) <4.5 0.3 µg/L Mn (µg/L) 2.8 0.1 µg/L Cu (µg/L) <5 1.0 µg/L Zn (mg/L) <0.05 1.0 mg/L Na (mg/L) 11.0 200 mg/L Sulphate (mg/L) <0.018 250 mg/L TDS (mg/L) 105 1000 mg/L Anionic surfactant (mg/L) <0.050 0.3 mg/L Oxygen demand (mg/L) 0.58 3 mg/L Volatile phenol (mg/L) <0.0003 0.002 mg/L NO3-N (mg/L) 2.50 10 mg/L Total hardness (mg/L) 65.0 450 mg/L CHCl3 (µg/L) <1.4 0.06 µg/L CCl4 (µg/L) <1.5 0.002 µg/L Total α radiation (Bg/L) <0.043 0.5 Bg/L Total β radiation (Bg/L) <0.015 1 Bg/L 84 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Referred Standard Limits Detection Testin Items Results of Drinking Water Hygiene point g Time Standard (GB5749-2006) NH4-N (mg/L) 0.104 0.5 mg/L Bromate (µg/L) <5.0 0.01 µg/L Formaldehyde (mg/L) <0.05 0.9 mg/L 85 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Annex 5: Letter of Commitment 86 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Annex 6: Document List No. Document EIA report and its approval, Luoyang Urban and Rural Integration Demonstration Zone Management 1 Committee, Bureau of Land and Environmental Protection, Feb. 3, 2016 2 Sewage discharge registration form and its receipt, valid until May 6, 2025 3 Water withdrawal permit, Luoyang Water Conservancy Bureau, April 2, 2019 4 Collective land use certificate, Yanshi Bureau of Land and Resources, April 28, 2010 5 Safety production standardization certificate, valid until May, 2024 Emergency plan for production safety accidents and its record form, Luoyang Yibin District Management 6 Committee, July 18, 2016 7 Emergency plan for environmental protection, March 10, 2016 8 Environmental and social management procedure document 9 System management organization chart 10 2 labor contracts, 2 samples of personnel file, 2 samples of social security certificate 11 Official employees’ roster 12 Temporary workers roster 13 Production worker attendance records, April-July 2021, Aug.-Oct. 2021 14 Production worker wage records, April-June 2021, Aug.-Oct. 2021 15 Training schedule and relevant training records of 2021 16 Partial chemical inspection report 17 Management mechanism of wastewater treatment station 18 Waste packaging drum recycling agreement, valid until Dec. 13, 2022 19 Waste packing drum register book 20 1 electrician certificate 21 Safety management personnel training certificate, Aug. 13, 2020 22 Annual lightning protection device test report of 2020, Dec. 4, 2020, 23 Export records of epidemic prevention and control materials, Feb.-May, 2021 24 Labor protection articles distribution record 25 List of raw materials 26 Fire safety daily checklist, Dec. 3, 2021 27 Enterprise safety inspection self-check form, Dec. 3, 2021 28 Production, safety meeting record registration form 29 Safety, production, management training record, 2020 30 Environmental monitoring report, April 14, 2021, April 1, 2019 87 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Annex 7: Photolog Picture 1: Factory brand Picture 2: Foam extinguishing agent production workshop Picture 3: Raw material warehouse Picture 4: Packaging drum warehouse Picture 5: Laboratory Picture 6: Fire extinguishing agent test area 88 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Picture 7: Waste packaging drums temporary Picture 8: Hazardous wastes warehouse storage area Picture 9: Production workshop exhaust gas Picture 10: Wastewater treatment facility exhaust cylinder Picture 11: Canteen Picture 12: Canteen fume exhaust cylinder 89 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Picture 13: Dormitory Picture 14: Consultation with Xihan Village Committee Picture 15: Consultation with Zhuge Town Picture 16: Consultation with Xihan Villagers Government and environmental protection bureau Picture 17: North side of the factory Picture 18: East side of the factory 90 Luoyang Langchao Fire Technology Co., Ltd -Project of Reduction and Phaseout of PFOS in Priority Sectors in China Picture 19: South side of the factory Picture 20: West side of the factory 91