Attachment 6 - LAC-IEE-16-57.pdf

RFP No. 72052220R00001

ATTACHMENT 6

INITIAL ENVIRONMENTAL EXAMINATION (IEE) No. No. LAC-IEE-16-57

LAC-IEE-16-57

ENVIRONMENTAL THRESHOLD DECISION

Activity Location: Honduras

Activity Title: Incomes Increase (DO2 IR 2.2)

Life-of-Activity Funding: $180,600,000

Life-of-Activity: September 15, 2016 – September 30, 2022

IEE prepared by: Sofia Mendez, D/MEO; Peter Hearne, MEO

Reference ETDs: LAC-IEE-10-82; LAC-IEE-13-48; LAC-IEE-14-13

Recommended Threshold Decision: Categorical Exclusion Negative Determination with Conditions

Bureau Threshold Decision: Concur

Purpose and Scope:

The purpose of this Initial Environmental Examination (IEE) and Environmental Threshold Decision (ETD) is to put in place a Project Appraisal Document-level (PAD) IEE for USAID/Honduras’s Income Increase project.

USAID/Honduras’s DO2 team has produced three IR-level PADs. Therefore, following the Project Design Guidance which states that each PAD requires an Initial Environmental Examination (IEE), there are three IEEs for DO2. The purpose of this document is to analyze the potential environmental impact for activities proposed under USAID/Honduras CDCS DO2, IR 2.2: Income Increase (further referred to as “the Project” or “IR 2.2”).

The Total Estimated Cost (TEC) for DO2’s IR 2.2 Project is $180,600,000. As defined for DO2, the Project seeks to increase incomes for individual and families to sustainably reduce poverty within the six departments of western Honduras (Copan, Santa Barbara, Ocotepeque, Intibuca, Lempira, and La Paz). The Project will increase incomes by improving agricultural productivity and increasing market access. Specifically, IR 2.2 will encourage farmers to adopt new technologies that will increase the yields per unit of land of their traditional crops, thus allowing them to diversify into higher value crops. IR 2.2 will also help farmers meet commercial quality and quantity standards and link producers to buyers, and improve market system infrastructure.

In order to increase market access, IR 2.2 will also facilitate and promote investments in productive infrastructure that connects farmers to buyers and markets and increases the farmers’ market readiness. Beyond solely focusing on farming, IR 2.2 will help new and existing rural MSMEs, especially those in the sustainable forestry and tourism sectors, acquire the skills and tools necessary to tap new market opportunities and compete in national, regional, and global markets. Private sector coordination will be improved by facilitating alliances with more sophisticated market partners. Finally, activities under this project will invest in the capacity of national and local governments in Honduras, the private sector, and civil society to address many of the binding constraints that are hindering the path to rural prosperity and food security.

The following three USAID/Honduras activities are already contributing to the achievement of IR 2.2 outcomes: Alliance for the Dry Corridor (ACS), ACCESS to Markets, and USDA PAPA.

These current activities were covered under LAC-IEE-10-82 and LAC-IEE-14-13 but are now absorbed into this new IEE as their actions have been incorporated into the new IR 2.2 PAD.

The past Environmental Threshold Decision for these on-going activities is valid until September 30, 2016.

Furthermore, the Project Appraisal Document (PAD) envisions six new awards under the IR 2.2 PAD that are included in this IEE, namely: FTF - Trilateral Activity, Local Service Management Systems, Small Infrastructure Activity for Western Honduras, Private Sector Competitiveness and Rural MSMEs Development Activity, Small Grants Program, Private Sector Partnerships, and New Agricultural Activity. These activities are further described in section 1.3.

Summary of Environmental Determination:

Categorical Exclusion A Categorical Exclusion is issued for activities under sub-outputs 1.2, 2.1, 2.2, and 2.3. Additional information is presented in the attached IEE, pursuant to USAID Environmental procedures 22 CFR 216.2(c)(2):

(i) Education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment (such as pesticide use, best agricultural practices).

Negative with Conditions A Negative Determination with Conditions is issued to the activities under sub-outputs 1.1, 1.2, 2.1, 2.2, and 2.3 pursuant to 22 CFR 216.3(a)(3). Additional information is presented in the attached

IEE.

Activities Type of EMMP

1. All sub-award activities. Sub-awards are presently envisioned for Sub-outputs 1.1, 1.2, 2.1, 2.2, 2.3; except for those under categorical exclusion, such as to provide training or to perform assessments.

Award-specific EMMP

2. Promotion of best agricultural practices. Under sub-output 1.1.

Umbrella EMMP

Follow USAID/Honduras

PERSUAP

3. Installation of small-scale irrigation systems to facilitate water availability for agricultural purposes. Under sub-output 1.1.

Site Specific EMMP for areas where the intake lies within buffer zones of protected areas.

Umbrella EMMP for areas where the intake lies within non-biologically significant areas.

4. Small-scale construction/renovation of facilities for water management, home improvement, Under sub-output 1.1; 1.2;

2.1; 2.2. 2.3

Umbrella EMMP for existing Sites (by type of construction )

Site-specific EMMP for all new sites.

5. Scaling up renewable energy technologies in poor communities. Under sub-output 1.1, 2.3

Umbrella EMMP for each technology

6. Provision of fertilizers, application of sanitary and phyto-sanitary measures, and all activities promoting pesticide use shall be done following the USAID/Honduras PERSUAP.

Under sub-output 1.1, 2.2, 2.3

Follow USAID/Honduras

PERSUAP

Pesticide Evaluation Report and Safer Use Action Plan (PERSUAP) Update The 2011 approved PERSUAP for USAID-ACCESO is being amended to include additional crops: chia, beetroot, celery, chayote, herbs, jicama, malanga, melon and radish. This amendment analyzes the recommended pesticides that are recommended for use to combat pests and diseases for these additional crops. Note: all of the pesticides and bio-pesticides/biologicals that are recommended for use with these additional crops are already approved in the 2011 PERSUAP.

No additional pesticides or biolocials are being recommended in this PERSUAP amendment.

Thus the recommended list of Pesticides in Annex F remains the same. This document has been revised based on comments and suggestions provided by USAID to the June 2016 version.

Malathion, Dimethoate and Dazomet have been removed.Continued use of Imidacloprid is requested under specific conditions and Glyphosate, unless USEPA modifies the registration category.

Copy to: Joe Torres, Regional Environmental Advisor

Copy to: Geeta Uhl, Ana Villegas, Christy Johnson

LAC/RSD-E

Copy to: IEE File

Appendices:

A. Initial Environmental Examination (with EMMP guidance as Attachment 1) B. Updated PERSUAP

LAC-IEE-16-57 APPENDIX A

INITIAL ENVIRONMENTAL EXAMINATION

Activity Location: Honduras

Activity Title: Incomes Increase (DO2 IR 2.2)

Life of Activity Funding: $ 180,600,000

Life of Activity: FY 2016 – FY 2022

Referenced Threshold Decision: LAC-IEE-10-82; LAC-IEE-13-48; LAC-IEE-14-13

IEE Prepared by: Sofia Mendez, D/MEO; Peter Hearne, MEO

Date Prepared: September 6, 2016

Recommendation for Threshold Decision:

Pursuant to section 216.2(a) of USAID environmental procedures, environmental analysis/evaluation is required for new projects, programs, or activities authorized by USAID. The attached information presents an analysis of activities planned under USAID/Honduras’ IR 2.2 PAD: Incomes Increased.

The USAID/Honduras Mission recommends the following Environmental Threshold Decision

(ETD):

Categorical Exclusion for the following activities:

IR 2.2 Sub Outputs. See IEE for details.

Categorical Exclusion Citation

Sub output 1.2; 2.1; 2.2; and 2.3.

(i) Education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment (such as pesticide use, best agricultural practices);

22 CFR 216.2 (c)(2)(i)

Negative Determination with Conditions for the following activities:

Activities Type of EMMP

1. All sub-award activities. Sub-awards are presently envisioned for Sub-outputs 1.1; 1.2; 2.1;

Award-specific EMMP

Activities Type of EMMP 2.2; and 2.3; except for those under categorical exclusion, such as to provide training or to perform assessments.

2. Promotion of best agricultural practices. Under Sub Output 1.1.

Programmatic EMMP

Follow USAID/Honduras PERSUAP

3. Installation of small-scale irrigation systems to facilitate water availability for agricultural purposes. Under sub-output 1.1.

Site Specific EMMP for areas where the intake lies within buffer zones of protected areas.

Programmatic EMMP for areas where the intake lies within non-biologically significant areas.

4. Small-scale construction/renovation of facilities for water management, home improvement.

Under Sub-output 1.1; 1.2; 2.1; 2.2; and 2.3.

Programmatic EMMP for existing Sites (by type of construction )

Site-specific EMMP for all new sites.

5. Scaling up renewable energy technologies in poor communities. Under sub-output 1.1 and 2.3.

Programmatic EMMP for each technology

6. Provision of fertilizers, application of sanitary and phyto-sanitary measures, and all activities promoting pesticide use shall be done following the USAID/Honduras PERSUAP. Under Sub-output 1.1, 2.2, 2.3.

Follow USAID/Honduras PERSUAP

Programmatic EMMP for application of sanitary and phyto-sanitary measures

This IEE also recommends approval of the Pesticide Evaluation Report and Safer Use Action Plan (PERSUAP), originally approved in LAC-IEE-13-48, and updated for USAID/Honduras’ current Acceso a Mercado Agricultural Program.

The 2011 approved PERSUAP for USAID-ACCESO is being amended to include additional crops: chia, beetroot, celery, chayote, herbs, jicama, malanga, melon and radish. This amendment analyzes the recommended pesticides that are recommended for use to combat pests and diseases for these additional crops. Note: all of the pesticides and bio-pesticides/biologicals that are recommended for use with these additional crops are already approved in the 2011 PERSUAP.

No additional pesticides or biolocials are being recommended in this PERSUAP amendment.

Thus the recommended list of Pesticides in Annex F remains the same. This document has been revised based on comments and suggestions provided by USAID to the June 2016 version.

Malathion, Dimethoate and Dazomet have been removed.Continued use of Imidacloprid is requested under specific conditions and Glyphosate, unless USEPA modifies the registration category.

1. BACKGROUND AND PROJECT DESCRIPTION

USAID/Honduras Country Development Cooperation Strategy (CDCS) (2015-2019) was approved by the Assistant Administrator for the Bureau of Latin America and the Caribbean on December 23, 2014 and was amended on May 11, 2016 to add a third Development Objective.

The CDCS includes three Development Objectives: DO1, citizen security increased for vulnerable populations in urban, high-crime area; DO2, extreme poverty sustainably reduced for vulnerable populations in western Honduras; and DO3, Government of Honduras national-level public administration is more transparent and accountable. DO2 includes the following intermediate results (IRs): IR 2.1: Resilience of livelihoods increased; IR 2.2: Incomes increased;

and IR 2.3: Human capital improved with a focus on children.

1.1 Purpose and Scope of IEE

USAID/Honduras’s DO2 team will produce three IR-level PADs. Therefore, following the Project Design Guidance which states that each PAD requires an Initial Environmental Examination (IEE), there will be three IEEs for DO2. The purpose of this document is to analyze the potential environmental impact for activities proposed under USAID/Honduras CDCS DO2, IR 2.2: Income Increase (further referred to as “the Project” or “IR 2.2”).

The Total Estimated Cost (TEC) for DO2’s IR 2.2 Project is $180,600,000. As defined for DO2, the Project seeks to increase incomes for individuals and families to sustainably reduce poverty within the six departments of western Honduras (Copan, Santa Barbara, Ocotepeque, Intibuca, Lempira, and La Paz). The Project will increase incomes by improving agricultural productivity and increasing market access. Specifically, IR 2.2 will encourage farmers to adopt new technologies that will increase the yields per unit of land of their traditional crops, thus allowing them to diversify into higher value crops. IR 2.2 will also help farmers meet commercial quality and quantity standards, link producers to buyers, and improve market system infrastructure. In order to increase market access, IR 2.2 will also facilitate and promote investments in productive infrastructure that connects farmers to buyers and markets and increases the farmers’ market readiness. Beyond solely focusing on farming, IR 2.2 will help new and existing rural Micro, Small, and Medium Enterprises (MSME), especially those in the sustainable forestry and tourism sectors, acquire the skills and tools necessary to tap new market opportunities and compete in national, regional, and global markets. Private sector coordination will be improved by facilitating alliances with more sophisticated market partners. Finally, activities under this project will invest in the capacity of national and local governments in Honduras, the private sector, and civil society to address many of the binding constraints that are hindering the path to rural prosperity and food security.

The following three USAID/Honduras activities are already contributing to the achievement of IR 2.2 outcomes: Alliance for the Dry Corridor (ACS), ACCESS to Markets, and USDA PAPA.

These current activities were covered under LAC-IEE-10-82 and LAC-IEE-14-13 but are now absorbed into this new PAD IR 2.2 IEE as their actions have been incorporated into the new PAD. The past Environmental Threshold Decision for these on-going activities, listed in Section

1.3 of this document, is valid until they expiration date.

Furthermore, the Project Appraisal Document (PAD) envisions six new awards under the IR 2.2 PAD that are included in this IEE, namely: FTF - Trilateral Activity, Local Service Management Systems, Small Infrastructure Activity for Western Honduras, Private Sector Competitiveness and Rural MSMEs Development Activity, Small Grants Program, Private Sector Partnerships, and New Agricultural Activity. These activities are further described in section 1.3.

1.2 Background

Poor social and economic conditions are especially pronounced in western Honduras. Extreme poverty, undernutrition, climate change vulnerability, low educational levels, lack of access to basic services, and other socio-economic challenges are endemic. From 2010 to 2015, the number of returned or deported migrants to Honduras increased by 353 percent to a total of 33,478 for 2015. According to the Honduran National Social Sector Information Center, 18.5 percent of returning or deported migrants had originally migrated from western Honduras.

Intermediate result (IR) 2.2 aims to increase incomes for an additional 26,000 rural households and move approximately 20,000 households above the extreme poverty line of $1.25/person/day.

With previous U.S. Government’s interventions, a total of 8,719 households have made their way out of extreme poverty, defined as $1.25/person/day, as of September 2015.

The Project aligns with the U.S. Strategy for Engagement in Central America (CEN Strategy), Gender Equality and Female Empowerment Policy, Feed the Future, and Global Climate Change. The Project is also aligned with the Local Solutions component of the USAID Forward reform agenda. Furthermore, the Project is also aligned with Government of Honduras (GOH)-led initiatives such as: Alliance for the Dry Corridor, Plan of the Alliance for Prosperity in the Northern Triangle, and Honduras Country Vision and National Plan.

1.3 Description of Activities

The Project’s strategy is based on a market-oriented approach to agricultural diversification and on strengthening agricultural and non-agricultural enterprises. It will also focus on working with key partners in the private and public sectors so they can assume leadership roles in sustainably reducing poverty through the creation of jobs and self-employment opportunities. The Project will develop the capacity of small, medium, and large enterprises so they can continue to grow, embed certain services such as inputs and finance into their supply chain, and access new regional and international markets. These anchor firms will be developed in different economic sectors that have been identified as having significant growth potential, particularly the agriculture, tourism, and sustainable forestry industries. Emphasis will be placed on developing new products and adding value to existing ones. Lastly, IR 2.2 will work with regional governments (Mancomunidades) and selected municipalities to help them develop mechanisms that will allow for the economic development and creation of jobs in their communities such as local enterprises for rural road maintenance, creation of agro-industrial parks, and financing for logistical facilities for small producers (cold storage, processing plants).

Output 1 (Sub IR 2.2.1): Agricultural Productivity Improved

Sub-output 1.1: Increased use of best agricultural practices and innovative technologies Farmers will be encouraged to adopt new technologies which will increase the yields per unit of land of their traditional crops, producing more of the staple food needed to feed their family. As yields grow, farmers will begin to diversify into higher value crops and increase their yearly production and sales. Technical assistance will be provided to ensure that best agricultural practices are being implemented. Illustrative interventions include:

1. Provide training in good agricultural practices and crop-specific technical assistance based on market quality requirements

2. Leverage partnerships with Honduran universities

3. Transfer higher-yielding technologies including access to irrigation

4. Sub-awards are envisioned under this sub-output.

Sub-Output 1.2: Improved access to sound and affordable risk management and financial services The Project will address the constraints to access finance. Constraints will be identified, prioritized, and addressed in partnership with the private sector. Constraints include but are not limited to the lack of registered property to serve as collateral, the tendency of rural small businesses to not register formally, the reluctance to use the banking system to manage business finances, and the lack of cash flow/credit history. Illustrative interventions include:

1. Promote financial services through non-traditional lenders

2. Promote resilience and risk-taking micro-insurance

3. Increase the capacity of borrowers

4. Stimulate a market for mobile money transactions

5. Sub-awards are envisioned under this sub-output

Output 2 (Sub IR 2.2.2): Market Demand and Access Increased

The Project will promote activities to stimulate productivity and supply and will also create the enabling environment for greater demand. The project will use a facilitation approach to stimulate changes in the market system without becoming part of the system.

Sub-output 2.1: Increased market readiness and access to markets The Project will strengthen existing producer organizations and businesses and help to develop new producer organizations, especially women-led units. Illustrative interventions include:

1. Facilitate market linkages for the poor, especially youth and women.

2. Develop long-term capacity of farmer groups and businesses with potential to reduce poverty.

3. Promote post-harvest management and storage capacity.

4. Sub-awards are envisioned under this sub-output.

Sub-output 2.2: Expanded markets and services for the poor and MSMEs Farmers’ businesses and non-farm enterprises will be strengthened and formalized, while also being linked to market partners (i.e., brokers, retailers, and exporters), to benefit from the services they provide. Illustrative interventions include:

1. Develop preferential supplier programs to enhance farmer associations’ market sustainability once they reach a level of proficiency through the project’s assistance

2. Increasing interest from retail buyers (supermarkets, specialty coffee buyers, etc.) in sourcing from small producers will represent a new market opportunity to many brokers and a compelling reason to pursue this new business model

3. Invest in brokers with a long-term vision

4. Provide technical assistance to sustain the growth of market-ready farmers

5. Improve the reach of transportation providers

6. Promote the expansion of rural businesses with high potential to link other producers to market opportunities (anchor firms) and generate employment

7. Bring financial services to key productive sectors with potential to reduce poverty

8. Sub-awards are envisioned under this sub-output

Sub-output 2.3: Increased public and private investment for local economic development Technical assistance will strengthen local government capacity to lead social development initiatives and provide targeted sector-specific technical assistance where needed to achieve targets and objectives. All levels and types of assistance will integrate principles of transparency and accountability and, where necessary, provide tools and strategies for improving supervision and oversight, assessment, and information sharing. Illustrative intervention include:

1. Strengthen municipal planning processes for economic growth

2. Sub-awards are envisioned under this sub-output

Current Activities within IR 2.2

Some of the Project’s implementing mechanisms are already in operation and will be closing during FY 2019. Current activities have a Categorical Exclusion for training and technical assistance. In addition, the activities have a Negative Determination with Conditions for activities of improvements in agricultural land preparation, installation of small-scale irrigation systems and other water management technologies, facilitation for MSMEs to improved agricultural production and productivity practices, provision of certified seeds and fertilizers, application of sanitary and phyto-sanitary measures, and all activities promoting pesticide use under the current ETD. These activities include:

ACCESS to Markets (contract, 2014-2019, TEC: $24.3 million, implemented by Fintrac Inc.). ACCESS to Markets includes two project output-level accomplishments:

i) improving agricultural productivity; ii) increasing market demand and access. The main goals of ACCESS to Markets are: (1) increase incomes for 15,000 households; (2) strengthen rural market systems so that a resilient and sustainable path exists for continued prosperity; and (3) reduce undernutrition by 20 percent in target communities (covered in the IR 2.3 PAD). ACCESS to Markets builds on previous successes and best practices, particularly the ACCESO activity. ACCESS to Markets will deepen ACCESO’s work with municipalities, to improve the environment for local business and investment.

Alianza para el Corredor Seco (ACS) (G2G agreement, 2014-2019, TEC: $60.6 million from USAID and $22 million from GOH, implemented by Inversion Estratégica de Honduras (Invest-H) successor to the Millennium Challenge Account

- Honduras). Under this Activity, USAID will intensify integrated, market-oriented assistance that is described in the FTF Multi-Year Strategy. The main goals of ACS are:

(1) increase incomes for 15,000 households; (2) strengthen rural market systems so that a resilient and sustainable path exists for continued prosperity; and (3) reduce undernutrition by 20 percent in target communities (covered in the IR 2.3 PAD). The Activity includes significant investments to increase household access to irrigation water.

This Activity was awarded directly to the GOH, to be overseen by Inversion Estratégica de Honduras – INVEST-H (also known as Millennium Challenge Account-Honduras (MCA-H)), a legacy agency that was in charge of implementing the USG-funded MCC compact that ended in 2010.

The current activities which have a Categorical Exclusion for training and technical assistance, under the current ETD, include:

USDA PAPA (interagency agreement, 2011-2018, TEC: $1.2 million, implemented by the U.S. Department of Agriculture). The USDA PAPA builds the capacity of the Ministry of Agriculture (SAG) in market information systems, and helps to open export opportunities for small and medium Honduran producers. The PAPA will train brokers and other buyers of FTF beneficiaries in market access requirements. For example, the recently passed U.S. Food Safety Modernization Act sets a higher standard for agriculture imports, presenting a threat to export opportunities for producers. USAID is also working trilaterally with the Government of Chile under this agreement to reform the Sanitary and Phytosanitary system of the Government of Honduras. USAID/Honduras buys into a regional PAPA mechanism at level of $200,000 annually, and plans to continue funding these activities at this level.

Planned New Activities within IR2.2

The following new activities planned under this Project are proposed in this IEE as a Categorical Exclusion for training and technical assistance, and a Negative Determination with Conditions for activities of improvements in agricultural land preparation, installation of small-scale irrigation systems and other water management technologies, facilitation of MSMEs to improved agricultural production and productivity practices, provision of certified seeds and fertilizers, application of sanitary and phyto-sanitary measures, all activities promoting pesticide uses, and renewable energy:

FTF - Trilateral Activity (2017-2021, TEC: $3.0 million). This Activity will focus on generating, adapting, validating, and making available technologies and practices that can effectively contribute to increased family incomes in rural areas. The activity will build on the trilateral partnership between the U.S., Honduras, and Brazil that has been implemented since 2012. It will also engage the private sector in: scaling up renewable energy in poor communities, strengthening the technical capacity of agricultural schools in western Honduras, and improving the capacity of rural small businesses.

Private Sector Competitiveness and Rural MSMEs Development Activity (2017-

2020, TEC: 70.8 million). This Activity will focus on increasing the capacity of rural and urban MSMEs in the DO2 Zone of Influence, to comply with market requirements.

It will also work to develop a proper enabling environment to promote growth of existing businesses and the creation of new ones. The Activity will increase competitiveness of MSMEs in the DO2 zone of influence by strengthening local business capacity for market readiness; facilitating access to financial tools and services for key productive sectors; fostering a proper business enabling environment; developing municipal planning and implementation capacities to identify key constraints for private sector growth such as the provision of basic services (water, energy, security) and investment in local productive/logistical infrastructure (agro-industrial parks, cold storage facilities, processing plants).

Small Grants Program (2017-2019, TEC: $250,000). USAID will do a small grants program with UN Women to work with vulnerable population civil society organizations, municipal offices, and entrepreneurship networks to provide small grants that promote economic development among vulnerable populations, and prevent and address gender-based violence issues, create outreach campaigns that address discrimination issues, collect analyze and distribute data, and promote strengthening and capacity building for organizations/institutions working in favor of vulnerable populations.

New Agriculture Activity (2018-2022, TEC: $19.1 million). This Activity will focus on generating, adapting, validating and making available technologies and practices that can effectively contribute to increase of family incomes in the rural areas. The new agriculture activity will work hand-in-hand with local communities to design and oversee original proposals that advance food security. It will be a laboratory in both process and content, trying out new, locally-owned approaches that improve food security in ways different from, but complementary to, successful prior Feed the Future activities in Honduras.

Private Sector Partnerships (2017-2020, TEC: $500,000). USAID is exploring alliances with universities and the private sector to expand entrepreneurship among vulnerable populations using technology such as cloud-based mobile platforms. USAID will incorporate innovation, technology, and partnerships to empower marginalized populations to increase their access to knowledge, capital, talent, and the market to break the existing cycle of unemployment and poverty.

The Local Governance and Small Infrastructure Activity for Western Honduras is not included in this IEE as its ETD was analyzed under LAC-IEE-16-34.

1.4 Geographic Coverage and Existing Conditions

As mentioned above, the IR 2.2 Project lift people out of poverty in the six departments of western Honduras (Copan, Santa Barbara, Ocotepeque, Intibuca, Lempira, and La Paz).

1.5 National Environmental Policies, Procedures and Regulations

The IR 2.2 Project shall follow Honduran environmental laws and regulations. The environmental regulatory framework for this Project is guided by the following regulations:

Honduras National Environmental Law (Ley General del Ambiente) applies to all activities of the IR 2.2 Project. The General Environmental Law (Decree 104-93 of May 27th, 1993) created the National Environmental Impact Assessment System (SINEA in Spanish). SINEA coordinates the environmental management and licensing process for all activities (public or private) with a foreseeable potential to affect the environment. The SINEA is coordinated by the Ministry of Natural Resources and Environment's (MiAmbiente) Directorate of Environmental Evaluation and Control (DECA in Spanish). SINEA's structure and procedures for environmental licensing are normed in their updated Regulation (Decree 189-2009, dated December 31, 2009).

2. EVALUATION OF ENVIRONMENTAL IMPACT POTENTIAL

The Mission conducts environmental monitoring and evaluation as established under USAID Environmental Procedures (22 CFR Section 216). For negative determinations with conditions, all implementing partners are required to submit an Environmental Mitigation and Monitoring Plan (EMMP) for review and approval by the Mission Environmental Officer (MEO). Additionally, Agreement Officer Representatives (AORs) and Contract Officer Representatives (CORs), in conjunction with the MEO and/or the Regional Environmental Advisor (REA) conduct random field visits to review compliance with mitigation measures. Based on these monitoring and evaluation processes, all activities that will be covered under this IEE are in compliance with USAID’s Regulation 216 and all prescribed mitigation measures and are deemed to be effective.

The following activities are expected to have an effect on the environment:

Promotion of best agricultural practices such as improved agricultural land preparation, such as minimum tillage, contour planting, raised bed planting to avoid pest, monitoring planting distance, seed selection. All these activities aimed at increasing productivity and represent minimum environmental effect due to soil movement, and use of plastic for raised beds.

Installation of small-scale irrigation systems to facilitate water availability for agricultural purposes. The majority of irrigation systems will be drip irrigation as a mean to promote effective water usage and as a climate adaptation measures. The remaining systems being small-dispersion irrigation, either gravity or pump-based systems. The participating farms are scattered throughout various regions and micro-watersheds within regions and many of the irrigation systems are already in place but in need of rehabilitation. Given this scenario, depletion of aquifers would not be an issue.

Small-scale construction/renovation of facilities for water management and home improvement. This activity may generate minor environmental impact due to solid wastes generation and management, Scaling up renewable energy technologies in poor communities. These technologies include mostly eco-stoves and installation of solar panels. They all aimed at reducing wood consumption, while improving household health and freeing women time. A minimum environmental impact is foreseen and shall be mitigated through the proper handling and disposal of solid waste such as batteries.

Application of sanitary and phyto-sanitary measures will be mostly through incentives sub-awards and training which pose minimum environmental impact. However, since specific actions under sub-awards are not yet known, an Environmental Mitigation and Monitoring Plan (EMMP).

All activities promoting the use of fertilizers are considered to pose a minimum environmental impact due to the handling and disposal of these substances. Thus, an EMMP would be needed to mitigate potential impact.

All activities promoting pesticide use shall be done following the USAID/Honduras PERSUAP . An updated version of the PERSUAP has been attached to this IEE.

Many of the activities will be implemented through sub-awards. As the specific actions for each sub-award are not yet known until the award proposals are received, an EMMP shall be prepared for each sub-award.

3. RECOMMENDED THRESHOLD DECISION AND MITIGATION ACTIONS

3.1 Recommend Threshold Decision

USAID/Honduras recommends the following Environmental Threshold Decision (ETD):

Categorical Exclusion for the following activities:

IR 2.2 Sub Outputs. See IEE for details.

Categorical Exclusion Citation

Sub output 1.2; 2.1; 2.2; and 2.3.

(i) Education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment (such as pesticide use, best agricultural practices);

22 CFR 216.2 (c)(2)(i)

Negative Determination with Conditions for the following activities:

Activities Type of EMMP

1. All sub-award activities. Sub-awards are presently envisioned for Sub-outputs 1.1; 1.2; 2.1; 2.2; and 2.3; except for those under categorical exclusion, such as to provide training or to perform assessments.

Award-specific

EMMP

2. Promotion of best agricultural practices. Under Sub Output 1.1.

Programmatic EMMP

Follow USAID/Honduras

PERSUAP

3. Installation of small-scale irrigation systems to facilitate water availability for agricultural purposes. Under sub-output 1.1.

Site Specific EMMP for areas where the intake lies within buffer zones of protected areas.

Programmatic EMMP for areas where the intake lies within non-biologically significant areas.

4. Small-scale construction/renovation of facilities for water management, home improvement. Under Sub-output 1.1; 1.2; 2.1; 2.2;

and 2.3.

for existing Sites (by type of construction )

Site-specific EMMP for all new sites.

5. Scaling up renewable energy technologies in poor communities.

Under sub-output 1.1 and 2.3.

for each technology

6. Provision of fertilizers, application of sanitary and phyto-sanitary measures, and all activities promoting pesticide use shall be done following the USAID/Honduras PERSUAP. Under Sub-output 1.1, 2.2, 2.3.

Follow USAID/Honduras

PERSUAP

Programmatic EMMP for application of sanitary and phyto-sanitary measures

Conditions:

For all the activities listed above as a Negative Determination with Conditions, each implementing contractor or partner shall fulfill the following conditions:

• Prepare an Environmental Management and Monitoring Plan (EMMP) which will identify the negative environmental impacts, propose corresponding mitigation measures, and monitor their effectiveness, utilizing the format in Attachment 1, including Tables 1, 2 and 3. Guidance on the preparation of the EMMPs will be provided to the Contractor/Recipient as part of the Request for Proposals. The type of EMMP (Programmatic or site-specific) is determined in the table above. All EMMPs will be submitted to the Contracting/Agreements Officer Representative (COR/AOR) for approval by the Mission Environmental Officer (MEO) prior to implementation. EMMPs must be consistent with “USAID's Sectoral Environmental Guidelines.” http://www.usaidgems.org/sectorGuidelines.htm. This document is available in both English and Spanish.

• Incorporate the completed EMMP into the initial work plan.

• Incorporate the EMMP into subsequent Annual Work Plans, making any necessary adjustments to activity implementation in order to minimize adverse impacts to the environment.

• Submit an annual environmental compliance report (ECR), preferably as part of the regular project reporting. This report should be based on Table 3 of the EMMP Format outlined in Attachment A. This report must be submitted to COR/AOR and approved in writing by the MEO.

• In addition to USAID Reg. 216 requirements, also comply with Government of Honduras (GOH) environmental regulations and obtain all required permits from the appropriate GOH officials.

• To ensure that all these environmental requirements and conditions are met in an adequate and timely manner, each implementing contractor or partner will hire a qualified environmental specialist.

• The agriculture production shall follow the Mission PERSAUP and agricultural Best Management Practices/Climate Smart Agricultural techniques as per the Agriculture Section of the USAID Sectorial Environmental Guidelines (see the link above).

3.2 Monitoring Requirements

The COR/AOR is responsible for making sure environmental conditions outlined in this IEE, and included in each EMMP, are met (ADS 204.3.4). This includes ensuring that the appropriate environmental guidelines are followed, that the mitigation measures are funded and implemented, and that adequate environmental compliance monitoring and evaluation protocols http://www.usaidgems.org/sectorGuidelines.htm are in place. If during activity implementation, it becomes apparent that there may be additional activities not included in this IEE, an amended IEE will be submitted for approval.

It is the responsibility of the Development Objective (DO) Team to ensure that environmental compliance language from the ETD is added to procurement and obligating documents, such as activity-related Development Objective Grant Agreements (DOAGs), Task Orders, Contracts, etc.

EMMPs shall be monitored by the Implementing Partner using Table 3 of the EMMP on a regular basis as per listed on the EMMP Table 3. COR/AOR/, MEO, and REA shall conduct spot check monitoring of the EMMP mitigation measures effectiveness and implementation together with the Implementing Partner.

3.3 Environmental Compliance Language for Awards

Each technical office, along with the MEO, will ensure that environmental compliance language from this IEE is included in all procurement and obligating documents, such as activity-related DOAGs, and under Global Acquisition and Assistance Systems (GLAAS). The following language regarding environmental compliance will be included in any kind of procurement instrument within this Project:

Categorical Exclusion and Negative Determination Only. “The Foreign Assistance Act of 1961,” as amended, Section 117 requires that the impact of USAID’s activities on the environment be considered and that USAID include environmental sustainability as a central consideration in designing and carrying out its development programs. This mandate is codified in Federal Regulations (22 CFR 216) and in USAID’s Automated Directives System (ADS) Parts 201.5.10g and 204 (http://www.usaid.gov/who-we-are/agency-policy/series-200), which, in part, require that the potential environmental impacts of USAID-financed activities are identified prior to a final decision to proceed and that appropriate environmental safeguards are adopted for all activities. [Offeror/ applicant/contractor/recipient] environmental compliance obligations under these regulations and procedures are specified in the following paragraphs of this [RFP/RFA/contract/task order/grant/cooperative agreement].

In addition, the contractor/recipient must comply with host country environmental regulations unless otherwise directed in writing by USAID.

No action funded under this [contract/task order/grant/CA] will be implemented unless an environmental threshold determination, as defined by 22 CFR 216, has been reached for that activity, as documented in a Request for Categorical Exclusion (RCE), Initial Environmental Examination (IEE) duly signed by the Bureau Environmental Officer (BEO).

As part of its initial Work Plan, and all Annual Work Plans thereafter, the contractor/recipient, in collaboration with the USAID COR/AOR and MEO, REA or BEO, as appropriate, shall review all ongoing and planned activities under this [contract/task order/grant/CA] to determine if they are within the scope of the approved Regulation 216 environmental documentation.

http://www.usaid.gov/policy/ADS/200/

At least one Negative Determination with Conditions, with sub-awards. An Initial Environmental Examination (IEE) [(insert IEE # or hyperlink, if available)] has been approved for [the Activity] funding this [RFA/RFP/contract/task order/grant/cooperative agreement (CA)].

The IEE covers activities expected to be implemented under this [contract/task order/grant/CA].

USAID has determined that a Negative Determination with Conditions applies to one or more of the proposed actions. This indicates that if these actions are implemented subject to the specified conditions, they are expected to have no significant adverse effect on the environment. The [offeror/applicant/contractor/recipient] shall be responsible for implementing all IEE conditions pertaining to actions to be funded under this [solicitation/award].

As part of its initial Work Plan, and all Annual Work Plans thereafter, the contractor/recipient, in collaboration with the USAID COR/AOR, and MEO, REA, or BEO, as appropriate, shall review all ongoing and planned actions under this [contract/task order/grant/CA] to determine if they are within the scope of the approved IEE.

If the contractor/recipient plans any new actions outside the scope of the approved IEE, the contractor/recipient shall inform USAID in writing of these changes. No such new actions shall be undertaken prior to receiving written USAID approval.

When the approved IEE contains one or more Negative Determinations with Conditions, the [contractor/recipient] shall:

● Prepare an environmental mitigation and monitoring plan (EMMP) for each proposed action under the Negative Determination with Conditions in the IEE, describing how the contractor/recipient will, in specific terms; implement all IEE conditions that apply within the scope of the award. The EMMP format is attached. The EMMP shall include monitoring the implementation of the conditions and their effectiveness.

● Integrate a completed EMMP into the initial work plan.

● Prepare an Environmental Compliance Report (ECR) at the end of the year or as per reporting requirements of the contract. The ECR shall be based on the monitoring of mitigation measures using Table 3 of the EMMP.

● A revised EMMP must be completed and approved in subsequent Annual Work Plans, making any necessary adjustments to implementation in order to minimize adverse impacts to the environment.

A provision for sub-awards is included under this award. Therefore, the [contractor/recipient] will prepare an EMMP for each proposed sub-award, except those that qualify for a categorical exclusion. In the case of a categorical exclusion, [contractor/recipient] shall complete and submit for USAID approval table 1 of the EMMP (Environmental Review Form- ERF). In order to ensure the funded proposals will result in no adverse environmental impacts. Implementation of sub-awards shall not begin prior to USAID written approval of the corresponding EMMP.

The contractor/recipient is responsible for ensuring that mitigation measures specified in the EMMP are implemented.”

Attachment 1 - Guidelines for Implementing Partners - USAID/Latin American and Caribbean Bureau (LAC) ENVIRONMENTAL MITIGATION and MONITORING PLAN (EMMP)

Attachment 1

Guidelines for Implementing Partners USAID/Latin American and Caribbean Bureau (LAC) ENVIRONMENTAL

MITIGATION and MONITORING PLAN (EMMP) 1

July 31, 2015

A. Background

All activities funded by USAID must conform to its environmental procedures outlined in 22 CFR 216, which require Initial Environmental Examinations (IEE) to ensure that “environmental factors and values are integrated into the USAID decision-making process” and that “the environmental consequences of USAID-financed activities are identified and considered by USAID and the host country prior to a final decision to proceed and that appropriated environmental safeguards are adopted”.

Based on the IEE’s recommendation, the Bureau Environmental Officer (BEO) issues an Environmental Threshold Decision (ETD) to all USAID activities and programs funded through USAID’s Latin America and the Caribbean Bureau (LAC) and its Missions (according 22 CFR 216.3(a)2). One category of Environmental Threshold Decision is the Negative Determination (22 CFR 216.3(a)3), which is given to projects that are not ”found to have a significant effect on the environment” when certain conditions are in place. In LAC, the development of an Environmental Mitigation and Monitoring Plan (EMMP) is often one of the conditions set forth in the Negative Determination. The EMMP ensures compliance with 22 CFR 216 by identifying and mitigating environmental effects of USAID activities and by meeting any other conditions specified in the applicable ETD. It is also used for any sub-award activities where the specific actions of sub-award are not yet identified at the time of award. In addition, Table 3 of the EMMP form can be used as a Mitigation and Monitoring Plan for Environmental Assessments

(EA).

Activities carried out by implementing partners (IPs) of USAID/LAC Missions include a range of discrete activities under various awards that will likely have a risk for significant environment effects. Examples include activities such as infrastructure refurbishment or medical waste management. This EMMP procedure will provide for both the screening for environmental risk, the preparation of a mitigation plan and reporting on monitoring of these mitigation measures.

Gender and persons with disabilities are also considered as social impact factors in the

1 This replaces all previous Environmental Mitigation Plan and Report (EMPR) forms development of a mitigation plan as these have a direct bearing on the type and kind of mitigation measure to be prescribed. Global Climate Change (GCC) and its impact on the project, as well as the project’s to exacerbate GCC is also a consideration within the EMMP process. Finally, the EMMP is an effective tool for applying USAID’s Sector Environmental Guidelines to an activity or program which has been developed as per 22 CFR 216.3(a)3(iii).

(http://www.usaidgems.org/sectorguidelines.htm).

The EMMP initially categorizes activities into three risk categories: No Risk, Medium Risk, and High Risk. Those with No Risk can continue without further review upon completion of the Table 1 screening form and review and approval of the risk analysis by the Agreement/Contract Officer’s Representative (AOR/COR) and the Mission Environment Officer (MEO). The EMMP typically deals with those activities at Medium Risk (see Figure 2). Those with High Risk must be reconsidered for the need of an EA. Risk is further defined in section C1 below.

All awardees that receive a Negative Determination with Conditions ETD will be required to fill out an Environmental Mitigation and Monitoring Plan (as attached) per activity type that includes:

1. Narrative (Justification/Background, Baseline Information/Existing Conditions, Description of Activities, and Social Considerations sections must be completed at a minimum).

2. The Environmental Screening Form (Table 1),

3. The Environmental Mitigation Plan (Table 2), and

4. The Environmental Monitoring Table (Table 3).

AOR/CORs, Activity Managers, and IPs can work with the USAID MEO to ensure that environmental effects are sufficiently identified and mitigation actions are agreed upon, including clear guidance on the procedures for GCC and social considerations, where fitting.

B. Timing of EMMP

All solicitations for activities that fall within the NWDC will included this document as part of the solicitation package as per the ADS 204 annex regarding solicitation language. As per direction outlined here and in the Environmental Considerations section of all solicitation, potential applicants must present a draft EMMP with their submission. This is important as the funding for mitigation implementation identified in Table 3 must be incorporated in the applicant’s proposal budget. The draft EMMP can also serve as a criteria for selection by the Technical Evaluation Committee reviewing proposals.

Once the IP is chosen, a revised initial EMMP is submitted by the applicant or contractor to the AOR/COR at the time the initial work plan is submitted. The MEO, and the Regional Environmental Advisor (REA) must approve this EMMP before work can commence. For sub-awards, the awardee is required to fill out the EMMP and submit it for approval to the Chief of Party (COP). The COP then submits the EMMP for review and final approval to the AOR/COR and MEO. Implementation of activities shall not occur until final approvals of the EMMPs are received.

A format for this initial EMMP can be seen in attachment 1; it includes:

1. An initial screening process using the “Environmental Screening Form” (Table 1) to assure the activity is at the Medium Risk…