ATTACHMENT_J.1_IEE_Memo_to_File__MTF_2_to_Asia_14-69.pdf

MTF 2 to Asia 14-69

Memorandum to the File (MTF)

DATE: January 29, 2019

TO: William Gibson, BEO/Asia

FROM: Michael Curtis, USAID/CA, Acting Director, Economic Development Office

THROUGH: Nina Kavetskaya, USAID/CA Regional Mission Environmental Officer, Climate Integration

Lead (USAID/CA RMEO/CIL); Zaur Bostanov, USAID/Kyrgyz Republic MEO/CIL THROUGH: Andrei Barannik, Regional Environmental Adviser for Central and South Asia, and for Office of Afghanistan and Pakistan Affairs

SUBJECT: Documentation of a new “Power Central Asia” (PCA) and CASA-1000 Secretariat Project (The Secretariat Project) activities under the Programmatic Energy and Water Cooperation IEE, Asia 14-69, and restatement of approved environmental conditions

Activity/Project Name: 1.Power Central Asia

2.The CASA-1000 Secretariat Project Development Objective

(DO)

DO 2: Enhanced regional cooperation for shared energy and water resources IR 2.1: Increased regional and national energy security IR 2.3: Improved energy and water infrastructure (other donors)

Country and/or Operating Unit

USAID/Central Asia (CA): Kazakhstan, Tajikistan, Kyrgyzstan, Turkmenistan and Uzbekistan ; and USAID/Kyrgyz Republic: Kyrgyzstan

Originating Office

USAID/CA Economic Development Office

☒M em o to a PA D Level IEE file ☐ M em o to a Supplem ental IEE file ☐ M em o to a R C E/IEE file ☐ M em o to an ER C file

Programmatic Energy and Water Cooperation IEE (P-IEE) Asia 14- Approved: 3/7/2014 Expiry Date: FY 2020 P-IEE ceiling: $60,000,0002

1 ECD link to Asia 14-69: https://ecd.usaid.gov/document.php?doc_id=40756 2 Actual Modern Energy obligations made up $30, 5M in FY 2014-2018 https://ecd.usaid.gov/document.php?doc_id=40756

Activity Start/Current End Date

PCA: October 2019 – September 2025 The Secretariat Project: January 2020 – September 2025

Funding Amount PCA: $55,000,000 The Secretariat Project: $18,000,000 Activities funding is above the LOP ceiling of Energy and Water Cooperation IEE by $43,510

Contract Award Number TBD

1.0 Purpose

Power Central Asia (PCA) and the CASA-1000 Secretariat Project (The Secretariat Project) are new activities that will be launched in FY 2019-FY 2020 under the Programmatic Energy and Water Cooperation IEE. PCA will be implemented through a Task Order under the Energy IDIQ managed by USAID/E3 in WDC. The Secretariat Project is a Small Business Set Aside contract that will be procured competitively.

The purpose of this MTF is to:

● Increase the P-IEE ceiling by $70 million. The new P-IEE ceiling ($130 million) reflects the funding of the two new energy activities and any other new activity in energy and water sector in FY 2019-FY 2025.

● Timely and duly account for PCA and The Secretariat Project to be implemented in Central Asia in FY 2019-2025. Document that they are covered by the P-IEE (Asia 14-69) in view that they were not explicitly mentioned in this P-IEE. The activity originators, USAID/CA RMEO/CIL and USAID/KR MEO/CIL have reviewed the proposed activities and determined that PCA and The Secretariat Project are consistent with and similar in the scope and nature to the activities approved by the BEO/Asia under the referenced P-IEE, which also contains language permitting addition of new activities.

● Establish that all conditions, limitations and stipulation for revision approved in the original P-IEE are extended and remain in force for the duration of the PCA and The Secretariat Project) in FY 2019-2025.

● Document additional condition for development of national strategies, policies, action plans; laws, regulations, and the like stipulating that these shall be consistent with national legislation in force and obligations under ratified international environmental agreements and conventions as well as with those of ILO, WHO, etc.(See section 3.4)

● Establish that more than 99% of program funds will be used for activities under approved Categorical Exclusion (CE) and only less than 1%, for activities under approved Negative Determination with Conditions (NDC), i.e. will require screening, mitigation, monitoring and reporting to USAID.

● Develop a brief climate risk analysis as required by the ADS 201mal, and stipulate that additional climate risk screening (CRS) shall be conducted by the implementing partner (IP)(s) prior to commencement of activities under approved NDC (see MTF Sections 3.3. and 3.4 below).

● Establish that all conditions, limitations and stipulation for revision shall be fully transposed into procurement instruments.

● Establish that at the “post-award conference”, the PCA and The Secretariat Project Activity Managers together with the RMEO/CIL shall explain to the IP(s) all conditions, limitations and stipulation for revision approved by the BEO/Asia in the original P-IEE and this MTF.

2.0 Background

PCA: Historically, the Central Asian countries operated as a united power system through centrally administered energy-water exchanges under the Soviet Union. After the breakup of the Soviet Union, the energy rich countries - Kazakhstan, Uzbekistan, and Turkmenistan pursued energy independence leaving Kyrgyz Republic and Tajikistan with mainly hydropower resources experiencing winter energy shortages.

Much of the energy infrastructure in Central Asia is aged and suffers from low energy efficiency and most countries heavily subsidize electricity. The Central Asian countries all have different national and regional energy priorities and are pursuing energy reforms at different levels. Many International Financial Institutions (IFIs) - in particular World Bank, Asian Development Bank, and European Bank for Reconstruction and Development, and Donors such as European Union, DFID, and JICA are assisting Central Asia countries with portions of their energy reforms.

The long-term goal of the PCA activity is to assist Central Asian countries (Kazakhstan, Uzbekistan, Tajikistan, Kyrgyz Republic, and Turkmenistan) with meeting their national and regional energy priorities to enhance their energy security through power sector entities strengthened; generation and transmission optimized; distribution improved and modernized, and cross-border energy trading increased;

and economic stability in close coordination with the IFIs and Donors to leverage USAID funding resources.

The program will address regional and national energy shortages, high energy losses and waste, non-self-sufficient utilities, energy subsidies, lack of independent regulators, access to electricity off-grid, sharing of energy resources between countries, little cross border energy trading, and enabling environment for private sector investment. The offeror will prepare Performance Work Statement (PWS) that outlines cost-effective solutions and innovative approaches to meet the USAID top-level objectives at regional and country level.

It is planned that PCA will overlap with on-going USAID’s Power the Future (PtF)3 for approximately two years and the contractor will coordinate complementary activities with PtF to avoid duplication of work. Upon completion of PtF, PCA could potentially continue selected PtF activities per the direction of USAID. PCA could also potentially build off advances for relevant activities made by USAID’s Energy Links (EL) five-year program running from October 2014 to September 2019.

The CASA-1000 Secretariat Project: The $1.2 billion Central Asia-South Asia Power Project (CASA-1000) is a large-scale infrastructure project that will interlink the power systems of four contiguous countries in Central and South Asia: the Kyrgyz Republic, Tajikistan, Afghanistan, and Pakistan. During the summer months, the hydropower plants in the Kyrgyz Republic and Tajikistan generate surplus electricity, while Pakistan experiences shortages of power. Once operational, The Secretariat Project will enable the Central Asian countries to sell 1,300 MW of electricity to Afghanistan and Pakistan in order to meet their rising electricity demands. Revenue from electricity sales in the summer months will enable the Kyrgyz Republic and Tajikistan to make further investments in their power systems to prevent electricity shortages in the winter, when limited water-flow constrains hydropower.

Coordination and management of the overall CASA-1000 project is done through a combination of an Inter-Governmental Council, a Joint Working Group (JWG), working level committees, and the Secretariat. The Inter-Governmental Council (IGC) that is responsible for deciding on high-level strategic issues regarding CASA-1000, and for ensuring that the necessary steps to implement the project are successfully taken. The IGC consists of Ministerial-level representatives from all four countries.

The IGC established working level committees and a Joint Working Group (JWG), comprised of qualified governmental officials and experts, to negotiate agreements and provide detailed project oversight. The JWG consists of representatives at the deputy ministerial level of all four countries. There are working level committees consisting of representatives from each of the four countries, including currently active Procurement, Legal Committee, and Finance Committees, and committees to be formed as the construction phase unfolds: Implementation, Technical, and Operating Committee.

The CASA-1000 Secretariat provides, on the IGC's behalf, central coordination in support of CASA-1000.

Located in Almaty, Kazakhstan, the Secretariat plays a key role in facilitating the work of the IGC, JWG and all working committees to keep all stakeholders on the critical path towards completion of CASA-1000. The Secretariat serves as an impartial advisor, coordinator, and facilitator; it provides legal, commercial, and

3 Link to PtF IEE amendment: https://ecd.usaid.gov/document.php?doc_id=49887 https://ecd.usaid.gov/document.php?doc_id=49887 technical expertise, ensures timely information flows, and facilitates decision-making and problem resolution among project stakeholders. The Secretariat does not engage in decision-making on behalf of the IGC, JWG, working committees or any other party, nor does its staff directly participate in individual country project implementation units or country committees in implementation of their components of the project. Once CASA- 1000 successfully completes system start-up and operations, it is anticipated that the Secretariat will be disbanded.

USAID has been supporting the CASA-1000 Secretariat for several years through its previous USAID Regional Energy Security, Efficiency and Trade Program (RESET) and USAID Energy Links Project (EL).

RESET assisted the early stages of work of the Secretariat, institutionalization of its operations and beginning of the procurement stage; EL actively supported the procurement stage and successfully led the program to the construction stage. Both RESET and EL performed various activities in the energy field of Central Asia, and support of the CASA Secretariat was only part of their duties. The new CASA-1000 Secretariat Project will be solely devoted to the support of the Secretariat during the most complicated stage of CASA-1000, construction.

Strategic Context: The proposed activities are closely aligned with USAID/Central Asia’s Regional Development Cooperation Strategy (RDCS) and, in particular, with its DO 2: Enhanced regional cooperation for shared energy and water resources, IR 2.1: Increased regional and national energy security, and IR 2.3:

Improved energy and water infrastructure (other donors). Across the region, the program supports the Foreign Assistance Framework, Objective: EG Economic Growth. Specifically, the program addresses Program Area/Element: EG.7 Modern Energy Services/EG.7.3 Energy Policy and Institutions.

PCA and The Secretariat Project program objectives and activities are described in Table 1 (Section 3.0).

2.1 Lessons Learned

During 2014-2018 all Energy activities under the Energy and Water Cooperation P-IEE have been in full compliance with USAID requirements established in P-IEE. These included Energy Links (2014-2019) with CASA-1000 component; Power the Future (PtF) TO 1 (2017-2022); Scaling Up Renewable Energy Central Asia Interagency Agreement with the Department of Energy’s National Renewable Energy Lab (NREL) (2017- 2018) and Central Asia Regional Energy Market (CAREM) (2019- 2021). A/ CORs and MEOs visited multiple project sites and conducted environmental compliance monitoring of these activities. Most of energy activities qualified for a Categorical Exclusion and didn’t require environmental screening, mitigation, monitoring and reporting to USAID. In several cases limited amount of electric and electronic equipment was procured and small construction or renovation activities took place (Energy Links). This was reported in accordance with P- IEE conditions. Small energy efficiency and water supply project in Tajikistan (Energy Links) required development of EMMP as part of the ERC which was approved by the RMEO. PtF activity conducted environmental and climate risk screening for the FY 2019 activities, which are expected to qualify for a CE.

CAREM started recently and no NDC activities are expected in FY 2019. AORs and MEOs (both USAID/CA and USAID/KR) will continue regularly check the implementers on implementation of activities and will ascertain that all activities are in full compliance with the approved environmental conditions.

3.0 Environmental Compliance

3.1 Environmental Compliance Screening

Screening is presented in Table 1 below. It is expected that the majority of activities will fall under Categorical Exclusion. Only if the project procures electric and electronic equipment and commodities; works on small renovation/ reconstruction activities under various components, and helps develop and improve policy and regulatory documentation, it will have to provide environmental management and reporting to USAID in accordance with terms established in P-IEE and Section 3.2 below.

Table 1 Environmental Compliance Screening of Proposed Activities

Project/Activity Types of Activities Threshold

Determination

PCA

Objective 1:

POWER

SECTOR

ENTITIES

STRENGTHENE

D

Strengthen Ministries to set national energy strategies and policies

● technical assistance, workshops, and training to develop or update demand forecasts and national electrification plans, identify relationships and responsibilities of all power sector entities and governance gaps.

Strengthen Independent Regulators to effectively regulate the energy sector

● technical assistance, workshops, and training to develop or update: national grid codes; cost reflective tariff rates and tariff rate structure; plans for reducing tariff subsidies; legal and regulatory framework for private investment, smart grids, and off-grid electrification, procedure for issuance of energy licenses for generation, transmission, distribution, and electricity trading.

CE, NDC

Objective 2:

GENERATION

AND

TRANSMISSION

OPTIMIZED

Generation and Transmission Optimized to meet demand and supply lowest cost, reliable power

● technical assistance, workshops, and training to:

develop or update least cost generation and transmission plans; perform system integration studies;

plans to increase energy efficiency at aged generation plants; integrate renewable energy projects into the grid; hold auctions for private sector generation;

introduce ancillary services and grid automation to maintain grid stability; reform procurement including transition from unsolicited proposals to transparent full and open competitive tendering; introduce public private partnership models.

CE, NDC

Objective 3:

DISTRIBUTION

IMPROVED

AND

MODERNIZED

On-grid utilities to efficiently distribute electricity, reduce losses, and operate as commercially viable entities

● technical assistance, workshops, and training to:

improve operations and maintenance; reduce aggregate technical and commercial losses; install and use modern utility management software; improve utility cost recovery; establish geospatial and engineering analysis platforms for distribution networks; develop least cost distribution expansion plans; develop or update design and construction standards for distribution networks; implement demand-side management and smart grid pilot projects; reduce frequency and duration of outages; streamline procurement for transparent competitive tending;

unbundle utilities.

Off-grid populations provided with access to electricity

● technical assistance, workshops, and training to:

identify off-grid areas and commercial solutions for lowest levelized cost of electricity; identify off-grid financing and grants.

Objective 4:

REGIONAL

ENERGY

TRADING

INCREASED

Regional Energy Trading Increased to ensure energy security

● technical assistance, workshops, and training to:

increase energy trading between countries;

establish power wheeling and energy transit agreements; increase bilateral and multilateral power trading revenues, establish a Central Asia Regional Electricity Market.

The Secretariat Project Governance

Provide the IGC and the various working groups and committees with complete and timely information on CASA-1000’s progress, so that the IGC can make proactive decisions.

CE

Policy Provide the IGC, the JWG and the various committees with the necessary information to communicate to senior-level government officials regarding the project.

Management

Support and facilitate the work of the IGC, JWG, committees, and (when necessary) other entities through logistical support for meetings and events.

Technical Advisory

Provide expert advisory services to the IGC, JWG and committees on specific technical, legal and commercial matters.

Coordination, Decision Management and Problem Resolution

Coordinate between stakeholders in order to facilitate timely decision making and problem resolution

CE

Communicati ons

Maintain effective communication with all stakeholders to ensure a clear, sufficient, and timely flow of information.

Document management

Maintain an electronic data management system to serve as a project information center and a single repository of all project data and documents.

Various components

Procurement of electric and electronic equipment, commodities and materials. Small scale construction, reconstruction or infrastructural activities, such as rehabilitating telecommunication system, increase in operating capacities

NDC (see conditions in Sections II and III of P-IEE Table 1), and Section 3.2 below

Various components

Policy recommendations, strategic plans and regulatory and legal changes.

NDC (See conditions in Section 3.2 below)

CE= Categorical Exclusion, NDC = Negative Determination w/Conditions

3.2 Threshold Determinations

a) Recommended Action: Categorical Exclusion (more than 99% of funding) for actions specified in the Table 3, Section I of the P-IEE that are not expected to have direct, indirect, or cumulative effects. No reporting is required.

b) Recommended Action: Negative Determination with Conditions (less than 1% of all funding) for activities related to development of policy recommendations, strategic plans and regulatory and legal changes. IP can recommend and assist in implementation of these actions only if environmental screening is done and mitigation measures are proposed to prevent potential negative impact of proposed recommendations implementation.

c) Recommended Action: Negative Determination with Conditions (less than 1% of all funding) for activities, when following normal good practices, engineering methods, and standard instructions will help to avoid potential environmental problems. This includes procurement of computers and other electric and electronic equipment, commodities, and materials. The proposed action is that the IP should provide evidence that equipment and materials are procured from certified retailers; environmental safety and quality certificates conforming with national and/or international standards are available; equipment and materials are used in an environmentally sound and safe manner, properly disposed of when applicable at the end of their useful life in a manner consistent with best management practices according to USG, European Union or equivalent standards.

d) Recommended Action: Negative Determination with Conditions (less than 1%) for activities involving grants that have a potential for an adverse impact on the natural or physical environment. The originator of the action has determined that pursuant to 22 CFR 216.2(d)(2), such activities as small-scale construction and reconstruction of electric power supply, and procurement of services and equipment to improve energy use and management as listed in Section III of Table 1 may have the potential for significant adverse environmental impacts and the Implementer should conduct due diligence and reporting to USAID as established in P-IEE terms. Environmental Review Checklist (ERC) should be used for EC reporting in accordance with the attached ERC template (Annex 1).

3.3 Climate Risk Screening

Based on multiple climate change reviews, projected change in Central Asian countries includes likely increases in average annual temperature of about 2°C across the region by 2050, and by 5-6 °C by the end of century; high variability and uncertainty of projected changes in precipitation across the region; and a higher frequency of heavy rain events along with the increased concentration of rainfall in winter months.4 The region

USAID Climate risk profiles might be found at:

is likely to experience increased incidence of drought and lengthened dry spells. Higher temperatures will increase evapotranspiration, leading to drier conditions, even if precipitation does not change. Increasing temperatures will likely decrease energy demand for heating in the winter, yet overall energy demand is expected to rise due to demographic and economic growth, the effect of increased temperatures on cooling requirements, and increased pumping for irrigation demands. Under changing climate conditions, increased droughts and water shortages resulting from warming will reduce water available for hydropower and thermoelectric cooling. Increasing glacial melt and changes in snowmelt and precipitation patterns are likewise likely to affect reliability of hydropower sources in the coming decades, with overall potential for decreases in availability possible in later decades. Increased frequency of extreme events, increased temperatures, increased incidence of drought will most likely cause increased damage to energy distribution networks, including transmission lines, pipelines and railways. New infrastructure investments may be necessary to meet increased energy demand, especially peak demand during heat waves.

PCA components will support activities that result in energy sector reform and could make recommendations impacting infrastructure. Initial climate risk assessment (see Table 2 below) shows that all activity components are rated as Low or Moderate climate risk as they are not expected to materially affect the implementation or outcomes of the activity. However, as project components may indirectly impact the environment and social life by establishing planning and regulatory documents, additional climate risk screening should be conducted for NDC activities by the IP(s) as required by ADS 201mal when a more meaningful analysis of environmental and social impacts becomes possible. The IP(s) may use sources referenced in the Central Asia, Kazakhstan, Uzbekistan, and Kyrgyzstan Climate Change Risk Profiles and GHG Emissions factsheets completed by USAID and posted on https://www.climatelinks.org. The CASA-1000 Secretariat Project will support activities that promote use of hydropower, thus contributing to increased usage of renewable clean energy. All activity components are rated as Low climate risk as they are not expected to materially affect the implementation or outcomes of the activity.

Table 2

Climate Risk Management Summary

Defined or Anticipated

Project Elements

Climate Risks

Risk

Rating Low/

Moderate/ High

How Risks are Addressed at Project

Further Analysi and Actions for Activity Design/ Implementation

Opportunities to Strengthen

Climate Resilience https://www.climatelinks.org/sites/default/files/asset/document/2018-April-30_USAID_CadmusCISF_Climate-Risk-Profile- Central-Asia.pdf https://www.climatelinks.org/resources/climate-risk-profile-uzbekistan https://www.climatelinks.org/resources/climate-change-risk-profile-kazakhstan https://www.climatelinks.org/sites/default/files/asset/document/2018_USAID-CCIS-Project_Climate-Risk-Profile-Kyrgyz- Republic.pdf.pdf https://www.climatelinks.org/ https://www.climatelinks.org/sites/default/files/asset/document/2018-April-30_USAID_CadmusCISF_Climate-Risk-Profile-Central-Asia.pdf https://www.climatelinks.org/sites/default/files/asset/document/2018-April-30_USAID_CadmusCISF_Climate-Risk-Profile-Central-Asia.pdf https://www.climatelinks.org/resources/climate-risk-profile-uzbekistan https://www.climatelinks.org/resources/climate-change-risk-profile-kazakhstan https://www.climatelinks.org/sites/default/files/asset/document/2018_USAID-CCIS-Project_Climate-Risk-Profile-Kyrgyz-Republic.pdf.pdf https://www.climatelinks.org/sites/default/files/asset/document/2018_USAID-CCIS-Project_Climate-Risk-Profile-Kyrgyz-Republic.pdf.pdf

Power Sector Planning (development of national strategies, policies, action plans; laws, regulations, international

Development of institutional capacities for regional market operation

Examples:

--Increased electricity demand due to temperature changes, whether for heating or cooling.

Power sector planning, regulatory documentation and training programs should include this risk to prevent using fuels with higher carbon emissions, such as fossil fuels rather than cleaner sources in order to meet higher demand.

--Affected reliability of hydropower sources in the coming decades, with overall potential for decreases in availability possible in later decades.

Low to Moderate

Not considered at the SOW level, all risks to be addressed by the Implementin g Partner when technical details are formulated.

Required by the potential Implementing Partner

To be suggested by the potential Implementing Partner

Operating capacities for regional market operation

Example:

Procured equipment and infrastructure may be damaged by extreme weather events

Low to moderate

As above As above As above

3.4 Implementing Partner’s procedures:

• The IP should follow requirements and conditions established in the P-IEE “Implementer Procedures Resource Allocation, Training and Reporting”.

• In addition to that the IP should:

-- Use ERC template for all NDC site-specific actions (Annex 1).

-- Conduct CRS for all sectoral and sub-sectoral activities with the approved NDC prior to commencement. CRS shall be presented in an ERC and appropriate commensurate mitigation and adaptation measures shall be developed and presented in Environmental Mitigation and Monitoring Plan (EMMP) and shall be reviewed and approved by the RMEO/CIL and Contracting Officer Representative (COR).

-- All policy, planning, and regulatory documents that may have potential direct, indirect and cumulative impact on nature, natural resources and human wellbeing when these documents are implemented, should include consideration of social and environmental concerns. These documents should be recommended and assisted for implementation only if they are done with indication of mitigation measures sufficient to prevent negative impact.

-- Include principles of environmental protection, impact mitigation and environmental sustainability in all activity components including those qualifying for a CE.

4. Revision

If during implementation, new activities are considered outside of those described in this document, an amendment shall be submitted. Pursuant to 22 CFR 216.3(a) (9), if new information becomes available which indicates that activities to be funded by the project might be `major’ and the project’s effect `significant’, this determination will be reviewed and revised by the IP, in collaboration with the COR of the project, and submitted to the BEO/Asia for approval and, if appropriate, an environmental assessment will be prepared.

DRAFTED BY:

Gene Lin, USAID/CA Energy Advisor, Economic Development Office

CLEARANCE:

USAID/CA Regional Mission Environmental Officer and CIL Nina Kavetskaya:

Cleared by email: January 28, 2019

USAID/KR Mission Environmental Officer and CIL Zaur Bostanov:

Cleared by email: January 14, 2019

Regional Environmental Adviser for Central and South Asia, and for Office of Afghanistan and Pakistan Affairs Andrei Barannik:

Concurred by email: December 20, 2018

CONCURRENCE:

Asia Bureau Environmental Officer:

William Gibson

Date: ________________________

Distribution:

● Project Files

● MEO Tracking System

● Asia Bureau Environmental Officer

● OAA

Annex 1

ENVIRONMENTAL REVIEW CHECKLIST

FOR IDENTIFYING POTENTIAL

ENVIRONMENTAL IMPACTS

OF PROJECT ACTIVITIES AND

PROCESSES

for [Activity Name]

Implemented under: [Project Name]

DCN: [of Parent IEE]

Prepared by: [Implementer]

ENVIRONMENTAL REVIEW CHECKLIST FOR IDENTIFYING POTENTIAL

ENVIRONMENTAL IMPACTS OF PROJECT ACTIVITIES AND PROCESSES

The Environmental Review Checklist for Identifying Potential Environmental Impacts of Project Activities and Processes (ERC) is intended for use mainly by implementing partners to: assess activity-specific baseline conditions, including applicable environmental requirements; identify potential adverse environmental effects associated with planned activity(s) and processes; and develop environmental mitigation and monitoring plans (EMMPs) that can effectively avoid or adequately minimize the identified effects. This ERC can also be substituted for other ERC versions that may have been attached to project initial environmental examinations (IEE). If implementing partners are in doubt about whether a planned activity requires preparation of an ERC, they should contact their Contracting Officer’s Representative (COR)/Agreement Officer’s Representative (AOR) for clarification. (When preparing the checklist, please indicate “not applicable” for items that have no bearing on the activity.)

A. Activity and Site Information Project Name: (as stated in the triggering IEE)

Mission/Country:

DCN of Triggering IEE:

Activity/Site Name:

Type of Activity:

Name of Reviewer and Summary of Professional Qualifications:

Date of Review:

B. Activity Description

1. Activity purpose and need

2. Location of activity

3. Beneficiaries, e.g., size of community, number of school children, etc.

4. Number of employees and annual revenue, if this is a business

5. Implementation timeframe and schedule

6. Detailed description of activity and site, e.g., size of the facility or hectares of land; steps that will be taken to accomplish the activity

7. Existing or planned certifications, e.g., ISO 14001 EMS, ISO 9000, HCCP, SA 8000, Global

Gap, Environmental Product Declarations, Eco Flower, EcoLogo, Cradle to Cradle, UL Environment, GREENGUARD, Fair Trade, Green Seal, LEED, or various Forest Certifications

8. Site map, e.g., provide an image from Google Earth of the location

9. Photos of site (when available)

C. Activity-Specific Baseline Environmental Conditions

1. Population characteristics

2. Geography

3. Natural resources, e.g., nearby forest/protected areas, ground and surface water resources

4. Current land use

5. Proximity to public facilities, e.g. schools, hospitals, etc.

6. Other relevant description of current environmental conditions in proximity to the activity

D. Legal, Regulatory, and Permitting Requirements

1. National environmental impact assessment requirements for this activity

2. Applicable National or local permits for this activity, responsible party, and schedule for obtaining them:

Permit Type Responsible party Schedule Zoning Building/Construction Source Material Extraction Waste Disposal Wastewater Storm Water Management Air Quality Water Use Historical or Cultural Preservation Wetlands or Water bodies Threatened or Endangered Species Other

3. Additional national or other international environmental laws, conventions, standards with which the activity might be required to comply

a. Air emission standards

b. Water discharge standards

c. Solid waste disposal or storage regulations

d. Hazardous waste storage and disposal

e. Historical or cultural preservation

f. Other

E. Engineering Safety and Integrity (for Sections E. and F., provide a discussion for any of the listed issues that are likely to have bearing on this activity)

1. Will the activity be required to adhere to formal engineering designs/plans? Have these been or will they be developed by a qualified engineer?

2. Do designs/plans effectively and comprehensively address:

a. Management of storm water runoff and its effects?

b. Reuse, recycling, and disposal of construction debris and by-products?

c. Energy efficiency and/or preference for renewable energy sources?

d. Pollution prevention and cleaner production measures?

e. Maximum reliance on green building or green land-use approaches?

f. Emergency response planning?

g. Mitigation or avoidance of occupational safety and health hazards?

h. Environmental management of mobilization and de-mobilization?

i. Capacity of the host country recipient organization to sustain the environmental management aspects of the activity after closure and handover?

3. Are there known geological hazards, e.g., faults, landslides, or unstable soil structure, which could affect the activity? If so, how will the project ensure structural integrity?

4. Will the site require grading, trenching, or excavation? Will the activity generate borrow pits? If so, how will these be managed during implementation and closure?

5. Will the activity cause interference with the current drainage systems or conditions?

Will it increase the risk of flooding?

6. Will the activity interfere with above- or below-ground utility transmission lines, e.g., communications, water, sewer, or natural gas?

7. Will the activity potentially interfere with vehicle or pedestrian traffic?

8. Does the activity increase the risk of fire, explosion, or hazardous chemical releases?

9. Does the activity require disposal or retrofitting of polychlorinated biphenyl-containing equipment, e.g., transformers or florescent light ballasts?

F. Environment, Health, and Safety Consequences

1. Potential impacts to public health and well-being

a. Will the activity require temporary or permanent property land taking?

b. Will activities require temporary or permanent human resettlement?

c. Will area residents and/or workers be exposed to pesticides, fertilizer, or other toxic substances, e.g., as a result of farming or manufacturing? If so, how will the project:

i. Ensure that these chemicals do not contaminate ground or surface water?

ii. Ensure that workers use protective clothing and equipment to prevent exposure?

iii. Control releases of these substances to air, water, and land?

iv. Restrict access to the site to reduce the potential for human exposure?

d. Will the activity generate pesticide, chemical, or industrial wastes? Could these wastes potentially contaminate soil, groundwater or surface water?

e. Will chemical containers be stored at the site?

f. Does the activity remove asbestos-containing materials or use of building materials that may contain asbestos, formaldehyde, or other toxic materials? Can the project certify that building materials are non-toxic? If so, how will these wastes be disposed of?

g. Will the activity generate other solid or hazardous wastes such as construction debris, dry or wet cell batteries, florescent tubes, aerosol cans, paint, solvents, etc.? If so, how will this waste be disposed of?

h. Will the activity generate nontoxic, nonhazardous solid wastes (subsequently requiring land resources for disposal)?

i. Will the activity pose the need to handle and dispose of medical wastes? If so, describe measures of ensuring occupational and public health and safety, both onsite and offsite.

j. Does the activity provide a new source of drinking water for a community? If so, how will the project monitor water quality in accordance with health standards?

k. Will the activity potentially disturb soil contaminated with toxic or hazardous materials?

l. Will activities, e.g., construction, refurbishment, demolition, or blasting, result in increased noise or light pollution, which could adversely affect the natural or human environment?

2. Atmospheric and air quality impacts

a. Will the activity result in increased emission of air pollutants from a vent or as fugitive releases, e.g., soot, sulfur dioxide, oxides of nitrogen, volatile organic compounds, methane.

b. Will the activity involve burning of wood or biomass?

c. Will the activity install, operate, maintain, or decommission systems containing ozone depleting substances, e.g., freon or other refrigerants?

d. Will the activity generate an increase in carbon emissions?

e. Will the activity increase odor and/or noise?

3. Water quality changes and impacts

a. How far is the site located from the nearest river, stream, or lake?

b. Will the activity disturb wetland, lacustrine, or riparian areas?

c. What is the depth to groundwater at the site?

d. Will the activity result in increased ground or surface water extraction? If so, what are the volumes? Permit requirements?

e. Will the activity discharge domestic or industrial sewage to surface, ground water, or publicly-owned treatment facility?

f. Does the activity result in increased volumes of storm water run-off and/or is there potential for discharges of potentially contaminated (including suspended solids) storm water?

g. Will the activity result in the runoff of pesticides, fertilizers, or toxic chemicals into surface water or groundwater?

h. Will the activity result in discharge of livestock wastes such as manure or blood into surface water?

i. Does the site require excavation, placing of fill, or substrate removal (e.g., gravel) from a river, stream or lake?

4. Land use changes and impacts

a. Will the activity convert fallow land to agricultural land?

b. Will the activity convert forest land to agricultural land?

c. Will the activity convert agricultural land to commercial, industrial, or residential uses?

d. Will the activity require onsite storage of liquid fuels or hazardous materials in bulk quantities?

e. Will the activity result in natural resource extraction, e.g., granite, limestone, coal, lignite, oil, or gas?

f. Will the activity alter the viewshed of area residents or others?

5. Impacts to forestry, biodiversity, protected areas and endangered species

a. Is the site located adjacent to a protected area, national park, nature preserve, or wildlife refuge?

b. Is the site located in or near threatened or endangered (T&E) species habitat? Is there a plan for identifying T&E species during activity implementation? If T&E species are identified during implementation, is there a formal process for halting work, avoiding impacts, and notifying authorities?

c. Is the site located in a migratory bird flight or other animal migratory pathway?

d. Will the activity involve harvesting of non-timber forest products, e.g., mushrooms, medicinal and aromatic plants (MAPs), herbs, or woody debris?

e. Will the activity involve tree removal or logging? If so, please describe.

6. Historic or cultural resources

a. Are there cultural or historic sites located at or near the site? If so, what is the distance from these? What is the plan for avoiding disturbance or notifying authorities?

b. Are there unique ethnic or traditional cultures or values present in the site? If so, what is the applicable preservation plan?

G. Further Analysis of Recommended Actions (if the applicable IEE requires the use of ERCs to perform further analysis of recommended actions, then check the appropriate box below. If this analysis is not required, then skip this and proceed with Section H. If required by the IEE, the ERC shall be copied to the Bureau Environmental Officer (BEO)).

☐ 1. C ategorical E xclusion: The activity is not likely to have an effect on the natural or physical environment. No further environmental review is required.* ☐ 2. N egative D eterm ination w ith C onditions: The activity does not have potentially significant adverse environmental, health, or safety effects, but may contribute to minor impacts that can be eliminated or adequately minimized by appropriate mitigation measures. EMMPs shall be developed, approved by the Mission Environmental Officer (MEO) (and the BEO if required by the IEE) prior to beginning the activity, incorporated into workplans, and then implemented. See Sections H and I below.* ☐ 3. Positive D eterm ination: The activity has potentially significant adverse environmental effects and requires further analysis of alternatives, solicitation of stakeholder input, and incorporation of environmental considerations into activity design. A Scoping Statement must be prepared and be submitted to the BEO for approval. Following BEO approval an Environmental Assessment (EA) will be conducted. The activity may not be implemented until the BEO clears the final EA. For activities related to the procurement, use, or training related to pesticides, a PERUSAP will be prepared for BEO approval.

☐ 4. A ctivity C ancellation: The activity poses significant and unmitigable adverse environmental effects. Adequate EMMPs cannot be developed to eliminate these effects and alternatives are not feasible. The project is not recommended for funding.

*Note regarding applicability related to Pesticides (216.2(e): The exemptions of §216.2(b)(l) and the categorical exclusions of §216.2(c)(2) such as technical assistance, education, and training are not applicable to assistance for the procurement or use of pesticides.

H. EMMPs (Using the format provided below, or its equivalent, list the processes that comprise the activity, then for each, identify impacts requiring further consideration, and for each impact describe the mitigation and monitoring measures that will be implemented to avoid or adequately minimize the impacts. All environment, health, and safety impacts requiring further consideration, which were identified in Section F., should be addressed)

1. Activity-specific environmental mitigation plan (Upon request, the MEO may be able to provide your project with example EMMPs that are specific to your activity.)

Processes Identified Environmental

Impacts

Do the Impacts Require Further Consideration?

Mitigation Measures

Monitoring Indicators

List all the processes that comprise the activity(s)(e.g . asbestos roof removal, installation of toilets, remove and replace flooring) A line should be included

A single process may have several potential impacts— provide a separate line for each.

For each impact, indícate Yes or No; if No, provide justification, e.g.,:

(1) There are no applicable legal requirements including permits or reporting and

(2) There is no relevant community concern and

(3) Pollution

For each impact requiring further consideration, describe the mitigation measures that will avoid or adequately minimize the impact. (If mitigation measures are well-specified in the IEE, quote directly from IEE.)

Specify indicators to (1) determine if mitigation is in place and (2) successful.

For example, visual inspections for seepage around pit latrine;

sedimentation at for each process.

prevention is not feasible or practical and

(4) Does not pose a risk because of low severity, frequency, or duration stream crossings, etc.)

2. Activity-specific monitoring plan Monitoring Indicators Monitoring and Reporting

Frequency Responsible

Parties Records

Generated Specify indicators to (1) determine if mitigation is in place and (2) successful (for example, visual inspections for seepage around pit latrine;

sedimentation at stream crossings, etc.)

For example:

“Monitor weekly, and report in quarterly reports.

If XXX occurs, immediately inform USAID COR/AOR.”

Separate parties responsible for mitigation from those responsible for reporting, whenever appropriate, If appropriate, describe types of records generated by the mitigation, monitoring, and reporting process.

I. Certification of No Adverse or Significant Effects on the Environment I, the undersigned, certify that activity-specific baseline conditions and applicable environmental requirements have been properly assessed; environment, health, and safety impacts requiring further consideration have been comprehensively identified; and that adverse impacts will be effectively avoided or sufficiently minimized by proper implementation of the EMMP(s) in Section G. If new impacts requiring further consideration are identified or new mitigation measures are needed, I will be responsible for notifying the USAID COR/AOR, as soon as practicable. Upon completion of activities, I will submit a Record of Compliance with Activity- Specific EMMPs using the format provided in ERC Annex 1 or its equivalent.

Implementer Project Director/COP Name

J. Approvals:

USAID COR/AOR Name

Mission Environmental Officer Name

Distribution:

● Project Files

● Bureau Environmental Officer

ERC ANNEX 1

RECORD OF COMPLIANCE WITH ACTIVITY-SPECIFIC

ENVIRONMENTAL MITIGATION AND MONITORING PLANS (EMMPs)

Subject: Site or Activity Name/Primary Project

Name/IEE DCN Number To: COR/AOR/Activity Manager Name Copy: Mission Environmental Officer Name Date:

The [name of the implementing organization] has finalized its activities at the [site name] to [describe activities and processes that were undertaken]. This memorandum is to certify that our organization has met all conditions of the EMMPs for this activity. A summary of the how mitigation and monitoring requirements were met is provided below.

1. Mobilization and Site Preparation

2. Activity Implementation Phase

3. Site Closure Phase

4. Activity Handover

Sincerely, Implementer Project Director/COP Name

Approved:

USAID/COR/AOR/Activity Manager Name

Distribution:

● Project Files

● MEO

● Bureau Environmental Officer

PCA and The Secretariat Project program objectives and activities are described in Table 1 (Section 3.0).