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KunmingXiShanMunicipalSolidWasteIncinerationPowerPlant

EnvironmentalAuditReport

February28,2014

KunmingXiShanMunicipalSolidWasteIncinerationPowerPlant

EnvironmentalAuditReport

AbbreviationsAPCAirPollutionControl

BATbestavailabletechniques

BEPbestenvironmentalpractices

CFBcirculatingfluidizedbed

XishanXishanMSWPowerPlant/XishanMSWIncinerationPlantEA

environmentalassessment

EHSGuidelinesWorldBankGroupEnvironmental,HealthandSafety

GuidelinesEPBEnvironmentalProtectionBureau

EMPenvironmentalmanagementplan

FECOforeigneconomiccooperationoffice,ministryofenvironmentalprotectionMEPMinistryofEnvironmentalProtection,PRC

MSWmunicipalsolidwastes

NIPNationalImplementationPlanofChina

POPsPersistentOrganicPollutants

StockholmSC

Convention

UMBUrbanManagementBureau

ii

Content

Abbreviations

ii

1

Introduction

11.1

Background

11.2Project

Design

21.3EA

Instrument

31.4PublicConsultation

Approach

32Incinerator

profile

42.1Basic

Information

42.2Company

Information

42.3OverviewofXishanIncineration

Plant43

LegalandRegulation

Framework

63.1DomesticLaws,Regulations,and

Policies63.2

Domestic

Approvals

14

3.2.1Domesticapprovalsofprojectproposaland

EA14

3.2.2Totalquantitycontrol

indexes

..143.3WorldBankSafeguardsPoliciesandEnvironment,HealthandSafety(EHS)

Guidelines

17

3.3.1CompliancewithWBsafeguards

policies17

3.3.2WorldBankGroupEnvironmentalHealthandSafety

Guidelines 173.4StockholmConvention

BAT/BEP

183.5ComparisonofApprovedDomesticStandardswithEHS

Guidelines194Environmentalandsocial

Baselines

234.1

General

234.2

Location

234.3Natural

environment

24

4.3.1

Soil

24

4.3.2Climaticandmeteorological

conditions24

4.3.3Riverandwater

system

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4.4Socio-economic

conditions

254.5SensitiveReceptorsandOther

Facilities

25

5ReviewofOperation

Conditions

285.1Basic

Information

28

5.1.1

Facilities

28

5.1.2EconomicandTechnical

Indicators30

5.1.3Operation

information

30

5.1.4Service

area

305.2Process

Analysis

30

5.2.1Pre-treatment

System

32

5.2.2Auxiliarycoalfuel

system

34

5.2.3Incineration

process

35

...43

5.2.4Fluegastreatment

system

36

5.2.5Bottomash(slag)andflyash

management38

5.2.6Wastewatertreatment

system

385.3Rawmaterialsuse,storageand

transport

40

5.3.1Consumptionandstorageofmainraw

materials40

5.3.2Transportofraw

materials

40

5.3.3Turnaroundmethodandsystemofrawmaterialsin

plant40

6PollutionControlandEmission

Compliance

436.1AirPollution

Control

43

6.1.1Airpollutioncontrol

processes

1.Dioxinsandheavymetal

control

44

1.Acidicgases

control

44

2.NOx

control

44

6.1.2Airemission

levels

45

6.1.3Controlofodorandnon-pointsourceair

pollutants48

6.1.4ControlofTotalPollutant

Amount

50

6.2Wastewater

management

506.3FlyAshandotherSolid

Wastes

50

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6.4Noise

control

52

7Environmental,HealthandSafetyManagement

System 547.1Settingof

enterprise’senvironmental

management 547.2

Responsibilities

547.3Environmentalsafety

assuranceandemergencyresponse 55

7.3.1Pollutionaccidentpreventionandenvironmentalmanagementmeasures55

7.3.2Operationinspectionandmaintenanceofenvironmental

protectionfacilities

56

7.4Mainriskfactorsandresponse

plan56

7.4.1Mainrisk

factors

567.5Response

system

56

7.5.1Personalprotective

equipment

...577.6Environmental

monitoring

587.7Environmentalcapacity

building

587.8EnvironmentalManagement

Budget

59

8Informationdisclosureandpublic

consultation

..608.1PublicConsultationbeforeBuildingXishan

Incinerator608.2Public

consultationforenvironmentalacceptanceandincineratoroperation...608.3PublicConsultationduringtheGEFProject

Preparation62

8.3.1First-roundpublic

consultation

63

8.3.2Second-roundPublic

Consultation

658.4Publicengagement

program

67

9EnvironmentalAuditConclusionsand

Recommendations699.1

Proceduralcomplianceofincineratorbuildingand

operation 699.2Compliancewithdomestic

environmentalprotectionrequirements 70

9.2.1CompliancewithdomesticMSWincineration

policies70

9.2.2ImplementationofrequirementsinEIA

approval77

9.2.3Analysisontheemissionstandardof

pollutants809.3Compliance

withtheWorldBank’srelated

policies809.4Audit

Conclusionand

Recommendations

83

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1Introduction

1.1Background

ChinasignedtheStockholmConventiononPOPsin2001andthePeople’sCongressratifiedtheConventionin2004.TheNational

ImplementationPlan(NIP)wascompletedin2007.Theproposedprojectwillcatalyzeandexpeditethephase-inofBestAvailableTechniques(BAT)/1intheMSWdisposalsectorthattheNIPidentifiedasaBestEnvironmentalPractices(BEP)

majorsourceofPCDD/Frelease.TheNIPidentifiedMSWincinerationasoneofthekeysourcesofPCDD/Frelease.

MSWmanagementisagrowingconcernforChina’scities.WithChina’srapideconomicdevelopment,urbanization,andrisingstandardsofliving,thequantityofmunicipalsolidwastescollectedand

transportedhasincreasedmorethanfive-foldnationwidefromabout31milliontonsin1980toabout157milliontonsin2009andisprojectedtoreach585milliontonsin2030.Nocountryhaseverexperiencedaslargeandrapidanincreaseinwastegeneration.Theroleof

incinerationinMSWmanagementhasbeenincreasingandwillcontinuetoincreaseduetoashortageofavailablelandforlandfillsandthe

incinerators’potentialabilitytogenerateheatorelectricity(“wastetoenergy”).AseriesofincentivepoliciesareinplacetoencourageinvestmentinMSWincinerators,includingvalueaddedtaxrefunding,prioritizedcommercialbankloans,statesubsidy(2%)forloaninterest,andfavorablefeed-inpricesfortheelectricitysale

intothegrid.Consequently,thenumberofMSWincineratorsisexpectedtorisefrom66in2009to200in2015,increasingtheincinerationcapacityfrom55.4thousandtonsto140thousandtonsperdayoverthesametimeperiod.

1

ChinahasalongroadaheadinadoptingthemodernMSWmanagement

hierarchy,whichmostfavorsprevention,followedby--inorderorpreference--minimization(reduction),reuse,recycling,energyrecovery,andleastfavorsdisposal.InChina,presentMSWmanagementgenerallyfocusesnarrowlyonthetraditionalpatternofcollectionanddisposal.Householdwasteisnotseparatedatthesource.Recyclablematerialcollectionandrecyclingisgenerallypursuedbythefor-profitprivatesector,whichfocusesonpaperproducts,metals,plastics,andglass.However,residentialwastecollectedandtransportedbymunicipalsanitationunitsfordisposalatincinerationorlandfillsstill

containsaconsiderableproportionofplasticbags,packagingmaterials,kitchenwaste,andsomemetals.Thehighmoisturecontentofthewastedeliveredtoincineratorsinhibitsthecombustionprocess,whileplasticsleadtodioxinprecursors,bothcausingPCDD/Fgenerationandrelease.

TheprojectwillimplementselectedNIPactionsthatshouldbecompletedby2015andfulfilltheassociatedobjectives.GEFsupported

activitieswillintegratePCDD/FreductionfromMSWintoChina’s

effortstomodernizeitsMSWmanagementsystem,bystrengtheningthepolicyandregulatoryframeworkandtheinstitutionalcapacity,demonstratingBAT/BEPapplications,preparingareplicationstrategyandraisingpublicawareness,andmonitoringandevaluation

1RelatedtotheStockholmConvention.

KunmingXiShanMunicipalSolidWasteIncinerationPowerPlant

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ofprojectresults.

InordertopromotetheBAT/BEPapplications,anexpertteamwasorganizedbyMinistryofEnvironmentalProtection(MEP)andWorldBank.And4existingincineratorsinKunmingcity,capitalofYunnanProvince,havebeenidentifiedfortheprojectBAT/BEPinvestment.These4pilotincineratorsareDongJiao,KongGang,WuHua,andXiShan.

1.2ProjectDesign

Theprojectincludestwodemonstrationcitiesandcentralgovernmentdepartments.Theprojectaimstodemonstrategoodpracticesinenhancingenforcementcapacityofregulatoryauthorities,applyingBAT/BEPsystematicallyinselectedincinerators,anddisclosinginformationtothepublic.Theproject’saimistodemonstratereductionofdioxinemissioninMSWincineration,recognizingtheincreasingtrendofMSWinChina;ratherthansupportincinerationperse.Demonstrationactivitieswilltakeplaceinexistingincineratorswiththeobjectivetograduallyreplicatetheminsome140otherincineratorsthatarebelievedtobeinoperationinChina.

IndemonstrationcityKunming,fourMSWincineratorshavebeen

identifiedforpossible

financing.Technicalevaluationandenvironmentalauditcarriedoutduringprojectpreparationfoundthatalltheplantsaregenerallymodernindesignandwellmanagedbyexperiencedoperators.All

incineratorshavethepotentialtomeetrelativelystringentdioxinsemissionstandard.However,consistentcomplianceissubjecttotechnical,operationalandstaffcapacityconstraints.Thusforeachincinerator,enhancingpretreatmentatgarbagepits,instrumentationandautomaticcontrolsystem,andairpollutioncontrolsystemwereproposed,dependingspecificissuesofeachincinerator.Further,the

environmentalauditalsofoundthatmonitoringofoperatingparametersandemissionsseemtobeinadequate,andsomemonitoringdataseemtobeunreliable.

Therefore,atwo-phaseimplementationapproachwillbetakenconsideringthetechnicalcomplexitiesassociatedwithMSWincinerationprocesses.Duringthefirstyearofprojectimplementation,eachofthefourincineratorswillbesubjecttoanintensiveoperationalandenvironmentalperformanceaudittocollectandanalyzecomprehensivedataonoperatingconditionsandenvironmentalemissions,andidentifyareasofimprovement.BasedonthesefndingsanoperationalimprovementprogramthatisconsistentwithBATandBEPwillbepreparedforeachincinerator.Incineratorsthatcommittoimplementingtheseprogramsandfulfillfinancialeligibilityconditionswillbesupportedduringthe

remainderoftheproject,includingthroughgrantfundingfornecessaryupgradesofequipmentrelevantfordioxinemissionreduction.ThefourexistingMSWincineratorsmayreceiveGEFfundingtoinvestinenhancedequipmentinordertoimplementoperatingimprovementprograms.Itis

anticipatedthatatleastthreeofthefourincineratorswillreceive

financialsupporttoimplementtheoperatingimprovementprogram.

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1.3EAInstrument

Giventhefactthatthefourincineratorsareexistingplants,andthenatureandscaleofactivitiesasmentionedabove,theproperenvironmentalassessmentinstrumentisanEnvironmentalAuditaccordingtotheBank’ssafeguardspolicyOP4.01.TheEnvironmental

Audithasreviewedtheoverallenvironmentalperformanceoftheeachincineratorintermsofregulatorycompliance,incinerationprocess,materialmanagement,emissioncompliance,safetyandhealthmanagementsystem,environmentalmanagementsystem,informationdisclosure.Basedontheenvironmentalaudit,anenvironmentalmanagementplan(EMP)hasbeendevelopedforeachplant.

1.4PublicConsultationApproach

Theprojectsocialassessmentconsultantandenvironmentalassessmentconsultantworkedtogetherwithincineratorstocarryoutpublicconsultationduringpreparation.TheFECO,incineratorsandtheBankhaveagreedthatthesocialassessmentisapartoftheEAandassuch,provideforitspublicconsultationpart.Tworoundofpublicconsultationwerecarriedoutduringtheprojectpreparation,oneatEAandSAworkplanstageinMay2013,theotherwasafterdraft

environmentalaudit,environmentalmanagementplan,andsocial

assessmentplanweredisclosedinMarch2014.

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2Incineratorprofile

2.1BasicInformation

Enterprisename:KunmingXishanMunicipalSolidWasteIncinerationPowerPlant,hereinafternamedasXiShan

Investor:YunnanGreenEnergyCo.,Ltd.

Enterpriseaddress:MassifeastofXiaohaikouVillage,HaikouTown,XishanDistrict,KunmingCity

2.2CompanyInformation

KunmingXishanMunicipalSolidWasteIncinerationPowerPlant(projectcompany:HangzhouJinjiangGroup)isoneofthe"double-hundred"keyprojectsofYunnanProvinceandaKunmingkeyconstructionproject,belongstotheurbaninfrastructureconstructionprojects.Integratingwastetreatment,powergenerationandheatsupply,theProjectisahighlyautomatedenvironment-friendlyco-generationproject.LocatedatHaikouIndustrialPark(XiaohaikouVillage),XishanDistrict,KunmingCity,theProjectcoversalandareaof90muandisapproximately40kmfromthedowntownofKunmingCity.

2.3OverviewofXishanIncinerationPlant

(1)Concessionalagreement

Theprojectcompanysignedanconcessionalagreement(Build-Operate-

Transfer)withKunmingUrbanManagementBureau,underwhichthecompany

runstheXiShanincinerator,receiveMSWtippingfeeandfeed-intariff.

(2)OperationFacilities

Threecirculatingfluidizedbed(CFB)incinerators(namely,

3×400T/Ddifferent-densitycirculatingfluidizedbedwasteincineration

boilers),2×12MWsteamturbinegeneratorunits;andcorresponding

environmental,electricfacilities.

(3)DesignCapacity

Thedesigneddailyprocessingcapacityofdomesticwasteis1000t.

Theannualprocessingcapacityis365,000t.Theannualelectricity

generatedis160millionkwh.(4)StaffmembersandWorkSystem

Workingdays:365d/a

Operationhoursforincinerator:8000h/a

Staffmembers:66staffsin3shifts

TheorganizationchartisshowninFigure2-1.

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Figure2-1OrganizationStructure

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3LegalandRegulationFramework

3.1DomesticLaws,Regulations,andPolicies

SinceChinaformallypromulgatedtheEnvironmentalProtectionLawofthePRC(forTrailImplementation)in1979,ChinasuccessivelypromulgatedmultipleenvironmentalprotectionlawsandregulationslikeLawofthePeople'sRepublicofChinaonThePreventionandControlofWaterPollution,LawofthePeople'sRepublicofChinaonthePreventionandControlofAtmosphericPollutionandMarineEnvironmentProtectionLawofthePeople’sRepublicofChina.Anenvironmentalprotectionlegislationsystemconsistingofcomprehensivelaws,pollution

preventionlaws,aswellasresourcesandecologicalprotectionlawshasbeenestablishedgradually.Atpresent,theenvironmentlegalsystemwithEnvironmental

asthecenterandtheConstitutionoftheProtectionLawofthe

People’sRepublicofChina

asthebasishasbeenformed.Inordertorealisticallyintensify

thePeople'sRepublicofChina

urbandomesticwastetreatment,improvethereduction,recycling,andsafetydisposallevelofurbandomesticwaste,andimprovetheurbanlivingenvironment,multiplelawsandregulationsrelatedtourban

domesticwastetreatmenthavebeenpromulgatedinChinaand

correspondingcontrolandpreventionpolicieshavebeenformulated.

Theenvironmentalprotectionlawsandregulationsrelatedtothe

Projectareasfollows.SeeTable3-1formainprovisions.

(1)EnvironmentalProtectionLawofthePeople’sRepublicofChina

(December26,1989);

(2)LawofthePeople'sRepublicofChinaonPreventionandControlofEnvironmentalNoisePollution(revisedonOctober29,1996);

(3)LawofthePeople'sRepublicofChinaonPreventionandControl

ofAtmosphericPollution(revisedonApril29,2000);

(4)LawofthePeople'sRepublicofChinaonthePreventionandControlofEnvironmentalPollutionCausedbySolidWaste(revisedonDecember29,2004);

(5)LawofthePeople'sRepublicofChinaonPreventionandControlofWaterPollution(implementedonJune1,2008);

(6)CleanerProductionPromotionLawofthePeople'sRepublicofChina(implementedonJuly1,2012);

(7)NationalHazardousWasteInventory,Decree1,issuedbythe

MinistryofEnvironmental

ProtectionandNationalDevelopmentandReformCommissionofthePeople'sRepublicofChina(implementedonAugust1,2008);

(8)RenewableEnergyLawofthePeople'sRepublicofChina(February28,2005);(9)CircularEconomyPromotionLawofthePeople'sRepublicofChina(August29,2008);

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(10)TechnologicalPolicyforTreatmentofMunicipalSolidWastesandItsPollutionControl,

issuedbytheMinistryofConstruction,MinistryofScienceandTechnology,andStateEnvironmentalProtectionAdministration(CJ[2000]No.120Document);(11)NoticeonStrengtheningtheManagementofEnvironmentalImpactAssessmentofBiomassPowerGenerationProject,H.F.[2008]No.82,September4,2008;(12)TechnicalGuideforDomesticWasteTreatment,issuedbytheMinistryofHousingand

Urban-RuralDevelopment,NationalDevelopmentandReformCommission,andMinistryofEnvironmentalProtection(April22,2010);

(13)GuidanceonStrengtheningDioxinPollutionPrevention(HF[2010]No.123Document);

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Table3-1ArticlesofEnvironmentalProtectionLawsRelatedto

DomesticWasteIncinerationinChinaNameArticles

Article10.Unitsthatemissionpollutantsinareaswherethelocal

standardsfortheemissionofpollutantshavebeenestablishedshall

observesuch

localstandards.

Article13.Unitsconstructingprojectsthatcausepollutiontothe

environmentmustobservethestateprovisionsconcerningenvironmental

protectionforsuchconstructionprojects.Theenvironmentalimpactstatementonaconstructionprojectmustassessthepollutiontheprojectis

likelytoproduceanditsimpactontheenvironmentandstipulate

thepreventiveandcurativemeasures;thestatementshall,afterinitial

examinationbytheauthoritiesinchargeoftheconstructionproject,besubmittedbyspecifiedproceduretothecompetentdepartmentof

environmentalprotectionadministrationforapproval.Thedepartmentofplanningshallnotratifythedesignplandescriptionsoftheconstruction

projectuntilaftertheenvironmentalimpactstatementonthe

constructionprojectisapproved.

Article24.Unitsthatcauseenvironmentalpollutionandother

publichazardsshallincorporatetheworkofenvironmentalprotection

intotheirplans

andestablisharesponsibilitysystemforenvironmentalprotection,andmustadopteffectivemeasurestopreventandcontrolthepollutionand

harmscausedtotheenvironmentbywastegas,wastewater,wasteresidues,dust,malodorousgases,radioactivesubstances,noise,vibrationandEnvironmentalelectromagneticradiationgeneratedinthecourseofproduction,constructionorotheractivities.

ProtectionArticle25.Forthetechnologicaltransformationof

newly-builtindustrialenterprisesandexistingindustrialenterprises,

facilitiesandprocessesthatLawoftheeffectahighrateofthe

utilizationofresourcesandalowrateoftheemissionofpollutants

shallbeused,alongwitheconomicalandrational

People'stechnologyforthecomprehensiveutilizationofwaste

materialsandthetreatmentofpollutants.

RepublicofArticle26.Installationsforthepreventionandcontrol

ofpollutionataconstructionprojectmustbedesigned,builtand

commissionedtogetherwith

Chinatheprincipalpartoftheproject.Nopermissionshallbe

givenforaconstructionprojecttobecommissionedorused,untilits

installationsforthe

preventionandcontrolofpollutionareexaminedandconsidereduptothestandardbythecompetentdepartmentofenvironmentalprotection

administrationthatexaminedandapprovedtheenvironmentalimpactstatement.

Article29.Ifanenterpriseorinstitutionhascausedsevere

environmentalpollution,itshallberequiredtoeliminateandcontrol

thepollutionwithin

acertainperiodoftime.

Article31.Anyunitthat,asaresultofanaccidentoranyother

exigency,hascausedorthreatenstocauseanaccidentofpollution,

mustpromptly

takemeasurestopreventandcontrolthepollutionhazards,makethesituationknowntosuchunitsandinhabitantsasarelikelytobeendangered

bysuchhazards,reportthecasestothecompetentdepartmentofenvironmentalprotectionadministrationofthelocalityandthedepartments

concernedandaccepttheirinvestigationanddecision.Enterprisesandinstitutionsthatarelikelytocauseseverepollutionaccidentsshalladopt

measuresforeffectiveprevention.

Article33.Theproduction,storage,transportation,saleanduseoftoxicchemicalsandmaterialscontainingradioactivesubstancesmustcomply

withtherelevantstateprovisionssoastopreventenvironmental

pollution.

Article9.Enterprisesandpublicinstitutionsshallsetupmanagementsystemsandtakemeasurestoreducetheconsumptionofresources,reduceCirculartheproductionandemissionofwastesandimprovethereutilizationandrecyclinglevelofwastes.EconomyArticle

18.TheadministrativedepartmentofcirculareconomydevelopmentundertheStateCouncilshall,togetherwiththeenvironmentalPromotionprotectiondepartmentandothercompetentdepartmentsundertheStateCouncil,issueacatalogueoftheencouraged,restrictedandeliminatedLawofthetechniques,equipment,materialsandproductsonaregular

basis.Itisprohibitedtoproduce,importorsellanyequipment,materialorproductPeople'slistedintheeliminatedcategory,anditisalsoprohibitedtouseanytechnique,equipmentormateriallistedintheeliminatedcategory.RepublicofArticle31.EnterprisesshalldevelopaninterconnectedwaterusesystemandacirculatorywaterusesystemsoastoimprovetherepeateduseofChinawater.Enterprisesshalluseadvancedtechnologies,techniquesandequipmentforthecirculatoryuseofthewastewatergeneratedinthe

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productionprocess.

Article12.Thenationshallimplementatime-limitedsystemfortheeliminationofobsoleteorobsolescentproductiontechnologies,processes,

equipmentandproductsgravelyhazardoustoenvironmentsand

wastefulofresources.

Article19.Enterprisesinthecourseoftechnologicalupgrades

shalladoptthefollowingcleanerproductionmeasures:(I)Adopting

toxin-free,

non-hazardousorlow-toxinandlow-harmrawmaterialstoreplacetoxicandhazardousrawmaterials;(II)AdoptingprocessesandequipmentwithCleanerhighresourceutilizationratesandlittlepollutant-generationtoreplaceprocessesandequipmentwithhighresource

consumptionandsignificantProductiongenerationofpollutants;(III)Comprehensiveuseorrecyclingofmaterialssuchaswasteproducts,wastewaterandheatgeneratedfromPromotionproductionprocedures.(IV)

AdoptingpollutionpreventionandcontroltechnologiessufficienttopermittheenterprisestocomplywithnationalorLawofthelocalpollutionemissionstandardsandtotalvolumecontrolquotasforpollutants.People'sArticle28.Enterprisesshallmonitorresourceconsumptionandgenerationofwastesduringthecourseofproductionandprovisionofservices,andRepublicofconductcleanerproductionauditswithrespecttoproductionandserviceproceduresaccordingtoneed.EnterprisesthatexceedthenationalorChinalocaldischargingstandardsorexceedthetotalvolumecontroltargetsforpollutantssetbytherelevantlocalpeople'sgovernmentsshallconduct

cleanerproductionaudits.Anyenterpriseusingtoxicandhazardousmaterialsinproductionordischargingtoxicandhazardoussubstancesshall

periodicallyconductcleanerproductionaudits,andreporttheauditresultstotherelevantadministrativedepartmentsforenvironmentalprotection

andtherelevantdepartmentsforeconomicandtradeunderthelocalpeople'sgovernmentatorabovecountylevel.

Article8.TheStateadoptseconomicandtechnologicalpoliciesandmeasurestofacilitatethepreventionandcontrolofatmosphericpollutionand

comprehensiveutilization.

Article11.Newconstructionprojects,expansionorreconstructionprojectswhichemissionatmosphericpollutantsshallbegovernedbythe

State

regulationsconcerningenvironmentalprotectionforsuchprojects.