Attachment_4-Initial_Environmental_Examination_(IEE)_No._DCN_2017-KOS-086.pdf

DCN: 2017-KOS-086

Kosovo/Local Effective Governance 1 EE.BEU Standard Form: IEE.v3

SOP-1, Template 1:

Initial Environmental Examinations (IEE)

US Agency for International Development (USAID)

USAID/Kosovo Initial Environmental Examination (IEE)

Program/Project/Activity Data

Activity/Project Name: Local Effective Governance (LEGO)

Assistance Objective:

Governing Justly and Democratically AO 3: Empowering Kosovo’s Citizens to Consolidate a Functioning Democracy IR 3.4: Increased Integration and Participation of Minorities

Program Area:

Good Governance PA 1.6 Conflict Mitigation and Reconciliation

Country(ies) and/or Operating Unit: Kosovo

Originating Office:

Democracy and Governance Office

Date: July 24, 2017

PAD Level IEE: Yes☐ No ✓

Supplemental IEE: Yes☐ No ✓

RCE/IEE Amendment: Yes☐ No ✓

DCN of Original RCE/IEE:

DCN of Amendment(s):

If Yes, Purpose of Amendment (AMD):

DCN(s) of All Related EA/IEE/RCE/ER(s):

Implementation Start/End: LOP: FY 2018- FY 2023

Funding Amount: LOP Amount: $15,000,000

Contract/Award Number (if known):

Recommended Environmental Determination:

Categorical Exclusion: ✓ Positive Determination: ☐

Negative Determination: ✓ Deferral: ☐

Additional Elements:

Conditions: ✓ Local Procurement: ☐

Government to Government: ☐ Donor Co-Funded: ☐

Sustainability Analysis (included): ☐ Climate Change Vulnerability Analysis (included): ☐

Kosovo/Local Effective Governance 2 EE.BEU Standard Form: IEE.v3

1. Background and Project Description

1.1 Purpose and Scope of IEE:

The purpose of this document, in accordance with Title 22, Code of Federal Regulations, Part 216 (22CFR216), is to provide a preliminary review of the reasonably foreseeable effects on the environment of the new Local Effective Governance (LEGO) activity described herein and recommend determinations and, as appropriate, conditions, for these activities. The LEGO activity is a 5 year, $15,000,000 endeavor focused on minority integration and participation activities through inclusive governance systems.

Upon approval, these determinations become affirmed, per 22CFR216 and specified conditions become mandatory obligations of implementation. This IEE also documents the results of the project/activity level Climate Risk Management process in accordance with USAID policy (specifically, ADS 201mal).

This IEE is a critical element of USAID’s mandatory environmental review and compliance process meant to achieve environmentally sound activity design and implementation. Potential environmental impacts should be addressed through formal environmental review checklists/environmental mitigation and monitoring plans (ERC/EMMPs).

1.2 Project Overview:

Kosovo is an ethnically diverse country, though Kosovo Albanians comprise approximately 90 percent of the population1. The historical legacy of the many ethnic groups residing in Kosovo made more pronounced since the breakup of the former Yugoslavia is one of separate communities. Six new predominantly Kosovo-Serb municipalities (established with the Ahtisaari plan in 2009) in southern Kosovo and four municipalities in the north (established in 2014), house the majority of the Kosovo-Serb population. Together these municipalities make up about six percent of the population. According to the Kosovo Conflict Assessment report2, relationships are mostly carried out through state institutions or in business. Tolerance factors, such as willingness to live in the same town or street, or work together is basically unchanged (around the 40th percentile for both groups, though Kosovo Serb responses fluctuate more). These 10 of the 38 municipalities in Kosovo have enhanced levels of autonomy, controlling education and health services, and can even receive funding from the Government of Serbia (GoS) for these purposes. Other non-majority communities, including Kosovo Bosniak, Kosovo Roma, Kosovo Turk, Kosovo Ashkali, Kosovo Gorani, and Kosovo Egyptian, collectively constitute about three percent of the total population and can be found throughout the country. Non-majority communities are those segments of the population that are not the majority in particular municipalities. For example, Kosovo Albanians are non-majority communities in the four northern municipalities. Survey data from MOSAIC3 illustrates that these non-majority populations are not adequately served by their municipalities with essential public services. In fact, data suggests that the Kosovo Serb-majority municipalities, despite receiving resources from Pristina and Belgrade, still fail to properly use these resources to serve citizens’ needs.

Additionally, non-majority communities often do not feel fully invested in the political life of their municipalities because they feel they are not included in decision-making or do not have information about how decisions are made in their municipality. While the Constitution and laws guarantee language rights--a prerequisite for political voice--a lack of information on these laws, growing linguistic differences, and unsympathetic behavior by government officials, denies these rights in practice, thereby exacerbating the sense of alienation. Moreover, a

The 2011 census showed that among Kosovo’s 1.8 million citizens 91 per cent are Albanians, 3.4 per cent are Serbs and the remainder belong to other communities, including Kosovo Turks, Kosovo Bosniaks, Kosovo Roma, Kosovo Ashkali, and Kosovo Egyptians. However, roughly 50% of the Kosovo Serb population boycotted the census.

USAID (2012) Kosovo Conflict Assessment - Breaking down invisible walls. http://pdf.usaid.gov/pdf_docs/pnaec930.pdf

Mosaic is a UNDP-produced survey of popular perceptions of municipal service delivery.

http://www.ks.undp.org/content/kosovo/en/home/library/democratic_governance/kosovo-mosaic-2015.html

Kosovo/Local Effective Governance 3 EE.BEU Standard Form: IEE.v3 considerable number of Kosovo Serbs, especially in the North, are not equipped with personal documents, amongst others identity cards, driving licenses, and passports. Although laws enshrine inclusion of non-majority groups, women, youth, and others, national politics and rhetoric reinforce divisions rather than promoting a culture of tolerance and inclusion. Inclusion has further proven to be elusive as previous assessments have shown that non-majority communities often view “integration” as code for “assimilation.” While that certainly is not the policy, poor compliance with language laws, indifferent implementation of decentralization, and nationalist sentiments among Kosovo- Albanians and Kosovo-Serbs (and other groups) reinforce the feeling among these communities that they are only tolerated and eventually will have to assimilate to survive.

USAID plans to build on its previous activities in local governance and non-majority inclusiveness. Importantly, the contractor will build off the AKT activities but go one step further in making sure that the municipal government is responsible and accountable for organizing community engagement activities and fulfilling its mandate.

Project Description:

The purpose of this activity is to strengthen the operations and inclusiveness of municipal governance in municipalities with non-majority communities in Kosovo.

Objective 1: Improved equitable, efficient, and transparent municipal governance which responds to citizens’ priorities with a focus on non-majority participation in democratic structures

Under this objective, technical assistance through advisory services will be given to municipalities in order to strengthen their governance and administration services. In addition Support Funds (SFs) will be given to municipalities to improve their service delivery (see 1.6) and communication. Support Funds of $3,500,000 must be used to provide planned technical and service delivery assistance to Kosovo stakeholders via sub-awards (either grants or subcontracts). These funds are also designed to provide USAID maximum flexibility in responding to time-sensitive, unanticipated, or compelling needs and opportunities to improve inclusive municipal governance and strengthen cooperation between majority and non-majority communities. These funds will be used to support interventions that contribute to the achievement of the contract’s purpose and the cost share will not be a mandatory requirement specified under the RFP.

Objective 2: Increased active citizen participation of both majority and non-majority communities in municipal structures

The contractor must work towards breaking down barriers to full participation in political life at the municipal level, including different approaches that build upon AKT aiming to attract youth and women as they present a significant potential to be drivers of change. This means that apart from strengthening the non-majority municipalities, the contractor must also make a conscious effort to help all communities better participate in municipal life in focus municipalities.

Noteworthy, USAID aims at the inclusion of non-majority communities through strengthening municipal governance in terms of decision-making processes, governance institutions, and society at large. Also, to strengthen the non-majority municipalities, the contractor must build linkages amongst the municipalities (inter-municipal cooperation) and between municipalities and central authorities.

The contractor must support the municipalities to fulfill some of their mandates as per the Law on Local-Self Government (2008) and to improve municipal performance and accountability. The contractor must build on USAID’s previous activities in local governance and non-majority inclusiveness, including its latest activity, Advancing Kosovo Together (AKT), but go one step further in making sure that the municipal government is responsible and accountable for engagement with the communities. Furthermore, the contractor must build upon previous cost-share arrangements with municipal and central level government. The contractor’s interventions must reflect central themes of local ownership and government and community accountability. For instance, the contractor must support the municipal governments to fulfill their mandates in terms of municipal economic

Kosovo/Local Effective Governance 4 EE.BEU Standard Form: IEE.v3 development (among others); therefore the contractor will not be providing grants to businesses but will assist the municipalities to facilitate economic development, support economic linkages between non-majority and majority businesses, and other municipalities. Moreover, other donors are providing some small and micro-grants that the contractor may leverage in working with the municipalities.

The contractor’s activities must be conducted in the following 14 municipalities: Leposavić/Leposaviq, Zvečan/Zveçan, Mitrovica/Mitrovicë North, Zubin Potok, Gračanica/Graçanicë, Ranilug/Ranillug, Štrpce/Shtërpcë, Obilić/Obiliq, Istog/Istok, Klina/Klinë Dragash/Dragaš, Parteš/Partesh, Klokot/Kllokot, and Novo Brdo/Novobërdë.

Additional municipalities may be included, with USAID COR approval, if compelling opportunities arise and if the contractor can demonstrate the ability to scale up interventions without losing the depth of interventions in the municipalities listed above. Furthermore, the contractor must make learning about successful interventions and lessons learned from the activity available to the central level government, all municipalities, civil society, and donors to help expand impact beyond the focus municipalities and as part of the contractor’s Collaborating, Learning, and Adapting (CLA) plan. For example, supporting national entities such as Ministry of Local Government Administration (MLGA), Association of Kosovo Municipalities (AKM) and, if established, the Association of Serb-Majority Municipalities to promote idea exchanges and peer-to-peer learning among municipal authorities and staff.

The Contractor is authorized to use grants under contract (GUCs) up to $1,500,000 to issue grants to CSOs, media, and other non-governmental partners to support initiatives under the objectives of the activity. USAID must be significantly involved in establishing grants guidelines and selection criteria and must approve the grant recipients.

2. Baseline Environmental Information:

2.1. Locations Affected and Environmental Context:

The environment—including environmental issues, problems, and threats to the environment—in Kosovo receives very little attention and is a low priority in the government’s agenda. To its credit, Kosovo is adopting new environmental laws and policies, though government institutions are struggling to plan and implement programs.

There are some success stories, but overall, environmental awareness is low and the implementation of programs to address threats and issues is small.

Water resources in Kosovo, their protection, their use, and their treatment have a key role in the nation’s environmental picture. The country is a virtual water tower in the central Balkan region. Elevations in the central part of the country range from 400 to 700 meters, while mountains on the borders, especially the west and south, range upwards of 2,500 meters. This also means that all surface water flows out of Kosovo; no water flows into the country from outside of its borders.

This has significant implications for Kosovo as it strives for membership in the EU. Trans boundary agreements, treaties, and policies that reflect the protection of water resources (including aquatic ecosystems and species), the treatment of pollutants flowing into surface waters and being absorbed into groundwater, and access to water by citizens are key environmental issues that will need to be addressed.

Water, clean water, can be the common focal point for Kosovo’s environmental causes. Adequate supplies, especially for economic development and high current use by the energy sector, are recognized as weak and shortages already occur in the drier summer months, especially in urban areas. Protection of watersheds by vegetative (tree) cover is poor, resulting in erosion into surface (storage) reservoirs and streams. Lack of forested cover on watershed areas needed for drinking and industrial uses also means that infiltration into underground aquifers is being impaired. And, finally, the complete lack of wastewater treatment facilities throughout the country

Kosovo/Local Effective Governance 5 EE.BEU Standard Form: IEE.v3 means that all surface waters in the country function as disposal conduits for all manner of sewerage and pollutants from residential, municipal, and industrial sources.

The contractor’s activities will be conducted in the following 14 municipalities: Leposavić/Leposaviq, Zvečan/Zveçan, Mitrovica/Mitrovicë North, Zubin Potok, Gračanica/Graçanicë, Ranilug/Ranillug, Štrpce/Shtërpcë, Obilić/Obiliq, Istog/Istok, Klina/Klinë Dragash/Dragaš, Parteš/Partesh, Klokot/Kllokot, and Novo Brdo/Novobërdë.

The interventions in each of the municipalities will vary depending on the needs of that particular municipality and must be addressed in the initial work plan after conducting an initial needs-based assessment together with the communities and governments of these municipalities.

As we know, between 2004 and 2008, 80 percent of Kosovo municipalities suffered from water shortages due to hydrological drought and the misuse of water resources. In the winter of 2014, following depletion of reservoirs from low snow and rain levels, the state water supply company instituted water rationing in Pristina, the capital.

Also, Kosovo has difficulty meeting peak demand for electricity. Energy predominantly comes from coal-fired power plants. Hydropower supplies 3–6 percent and expansion is limited by the unequal distribution and inadequacy of water resources. In addition, Kosovo is also at risk from flooding in lowlands, flash flooding in upland areas and dam breaks. One of the municipalities under this activity, Gracanica is set on a flat area of mainly agricultural land along the Gracanka River. These factors will be considered under the identification and grant screening processes within this municipality too.

2.2. Description of Applicable Environmental and Natural Resource Legal Requirements Policies, Laws, and Regulations

Kosovo is adopting laws that are harmonized with EU environmental standards. However, these laws do not have the needed sub-laws, regulations, and policies needed for implementation. Key environmental policy documents include the Kosovo Environmental Strategy 2005-2015, adopted by the Government of Kosovo (GoK) in July 2004, and the Kosovo Environmental Action Plan 2006-2010 (KEAP), the midterm roadmap for implementation of the Environmental Strategy. The GoK is implementing many of the 52 priority projects listed in the Strategy’s annex.

The Kosovo Assembly has adopted several laws related to the environment, all of which include the use of different economic instruments. The State of Environment Report in Kosovo is published every two years by Kosovo Environmental Protection Agency (KEPA). KEPA collects the environmental data from monitoring institutions, companies, operators and different establishments, publications, reports and other sources. The Report establishes a firm foundation for cooperation and coordination with the European Environmental Agency (EEA) and EIONET2.

The European Partnership priorities provide the basic framework for harmonization with EU environmental legislation. Kosovo has made advances in legislation concerning air quality and water quality and the new environmental laws are an important step.

The Fund for Environmental Protection was established in Article 77 of the Law for Environmental Protection. The draft Environmental Protection Fund requirement was drafted in 2005 to support financial investments financed by the Kosovo Assembly through revenues from environmental taxes and be used for waste collection and disposal, utilization of biomass, energy efficiency and reduction of CO2 emissions, wastewater treatment plants, monitoring systems and equipment for inspectors, and more.

The GoK adopted the Law on Waters (2004/24) on October 14, 2004. The Kosovo Water Law sets provisions for the development of the Water Management Strategy and Action Plan. The GoK has issued sub-legal act for the drafting of the Water Resources Management Plan. Kosovo’s national policy includes the process of EU integration. One of the challenges is the fulfillment of EU environmental standards and harmonization of national

Kosovo/Local Effective Governance 6 EE.BEU Standard Form: IEE.v3 legislation with EU legislation. Kosovo is working to harmonize with EU directives through Frame Directive for Waters (2006/12/EC), Directive for Urban Contaminated Waters (91/271/EEC), Directive for Potable Water (98/83/EC), and Directive for Nitrates (91/676/EEC).

Apart from the Law on Environmental Protection (2003), the Law on Air Protection (2004) was drafted in accordance with certain EU Directives. The Law categorizes main pollution sources, sets basic air pollution indicators and obligations, and recommends adoption of limits for air discharge according to EU and World Health Organization (WHO) standards. In its harmonization efforts EU directives, Kosovo is working through the Frame Directive for Environmental Air Quality (2006/62/EC), Directive for Value Limits of SO2, NOx, particulate matter) and lead in Environmental Air (99/30/EC), Directive for Benzene and Carbon Monoxide (2000/3/EC), and Directive for Ozone (2002/3/EC) to reach harmonization with EU standards.

The Assembly approved the Waste Law on July 22, 2005. This Law was prepared according to relevant EU Directives and the experiences of neighboring countries. The most important document which will need to be approved and enforced is the National and Municipal Waste Management Strategy with Action Plan, where main directions for waste management will be defined and long-term needs in local and national level will be assessed. In trying to harmonize with EU standards, Kosovo is working through Directive for Waste (2006/12/EC), Directive for Hazardous Waste (91/689/EC), Directive for Waste Dumping Sites (99/31/EC), Directive for Waste Incineration (2000/76/EC), and Directive for Hazardous Substances (67/548/EEC).

2.3 Institutional Country Environmental Capacity Analysis

The Republic of Kosovo is a new country, established as a state on February 17, 2008. It lies in Southeast Europe in the central part of the Balkan Peninsula, bordered on the southwest with Albania, on the northwest with Montenegro, on the north and northeast with Serbia, and on the southeast with Macedonia. Its population is young (65% is under 30 years) and has the highest birthrate (2.5%) in Western Europe (Balkan Insight, 2009). It also has a literacy rate that exceeds 90% and an unemployment that is greater than 40%. Major industries are agriculture, energy, and mining. There is a low level of economic development, very slow development of privatization processes of government-owned enterprises, and an unclear vision for economic development. Industrial production and mining from the former socially-owned sectors has dropped and the increase of privately owned production enterprises is slow. There is a scarcity of qualified professionals in all sectors of the economy and within government institutions.

The Ministry of Environment and Spatial Planning (MESP) is the lead environmental institution responsible for the preparation and implementation of environmental laws. A municipality may exercise responsibility for those environmental matters originating, or likely to originate, within their municipality, if programs can be handled, controlled, prevented, financed, or managed. Municipal responsibilities include establishing standards and ensuring compliance with standards, protection of the environment within the municipality, and establishing measures consistent with sustainable economic development.

Implementing partner will work with the environmental officers of the targeted municipalities, to identify potential environmental impacts and to subsequently draft a set of suitable mitigation measures. The resulting environmental mitigation and monitoring plan (EMMP) will ensure that elimination and/or reduction of project environmental impacts. Compliance with the EMMP shall be monitored regularly on the construction site by the municipal officers and USAID implementer Environmental expert.

The implementer will report to USAID/Kosovo on how municipalities are complying with its environmental legal requirements, including permitting, is adequate and effective. Also USAID/Kosovo will be notified if situations

Kosovo/Local Effective Governance 7 EE.BEU Standard Form: IEE.v3 arise that do not allow the certification in b. above, and pursue arrangements with USAID undergo training and capacity building, which is intended to address the identified deficiencies.

All adequate requirements for environmental, health, and safety compliance and best management practices in tender documents used to procure activity related goods and services will be included.

2.4 Sustainability Analysis

In general, all issues related to the environmental impact in Kosovo are regulated with the Law on Environmental Protection, No.03/L-025 and the Law on Environmental Impact Assessment, No. 03/L-214, sponsored by the Kosovo Ministry of Environment and Spatial Planning (MESP). With the aim of clarifying the responsibilities and duties of the Local Governments in evaluating and monitoring environmental compliance during the project/activity implementation, MESP is have prepared and approved on August 16, 2012, an Administrative Instruction (AI) for the Release of Municipal Environmental Permits.

All activities that will be implemented under this project and evaluated as with Negative Determination with conditions will have the ERs prepared in cooperation with the stakeholders and will include the mitigation measures. Due to the lack of the secondary legislation (Administrative Instructions) within the municipalities for clarifying roles and requirements during the implementation, the activity will work closely with the local administrators who are responsible for ensuring environmental protection and reducing environmental impact within their municipalities. The implementer’s project activity environmental expert will provide on the job training for the municipal staff in addressing environmental impact issues during the entire process of the project implementation.

2.5 Climate Change Vulnerability Analysis

Since the end of armed conflict in 1999, Kosovo has embarked on a process of rebuilding and strengthening its physical and legislative infrastructure. Nonetheless, climate change adaptation remains a challenge and country-specific studies of climate trends, projections, and impacts are limited. Kosovo’s economy has grown steadily since 2008, when it became a unilaterally declared independent state, although its unemployment and poverty rates are among the highest in Europe. While Kosovo’s large service sector (67 percent) is less vulnerable to climate change, agriculture (13.7 percent) and industry (19.3 percent) are important drivers of the economy and are vulnerable to water shortages, heat waves, drought, and flooding. Accelerated construction since 1999 combined with poorly regulated land use planning and lack of adherence to building codes increases the rapidly growing population’s exposure to hazards. In 2014, a mild winter and record-setting dry February was followed by a record-setting wet April; exceptionally heavy rainfall triggered flash flooding and serious damage to infrastructure, especially in northern Kosovo. Mining of lignite (a low-energy, high-pollutant coal) and mineral deposits, insufficient wastewater treatment and lack of public environmental awareness also contribute to serious air and water pollution and environmental degradation challenges that Kosovo is working to control; these will be compounded by climate change impacts.

Water Resources: Based on projections of higher temperatures, reduced precipitation, and population growth, four of Kosovo’s five water basins may become water stressed or water scarce by 2050. Renewable water resources per person are 16 percent of regional averages, and precipitation and water storage capacity are also less than half of regional averages. Reservoirs are a source of water for major towns but in rural areas only 61 percent of houses are piped to public supply systems, supplemented by wells or springs. The Dukagjini Plain in the west and south has more plentiful surface and groundwater; the Kosovo Plain in the east and north is at higher risk of water shortages due to less annual rainfall, less access to groundwater and higher population density. Additional causes of water

Kosovo/Local Effective Governance 8 EE.BEU Standard Form: IEE.v3 scarcity include increasing consumption, inefficiency, and leakage in pipes, and extended irrigation needs. Water quality of Kosovo’s rivers suffers from a lack of residential and industrial wastewater treatment and poor riverbed maintenance, further limiting the availability of water for drinking supply and irrigation.

Between 2004 and 2008, 80 percent of Kosovo municipalities suffered from water shortages due to hydrological drought and the misuse of water resources. In the winter of 2014, following depletion of reservoirs from low snow and rain levels, the state water supply company instituted water rationing in Pristina, the capital.

Kosovo is also at risk from flooding in lowlands, flash flooding in upland areas, and dam breaks. Flood risk and the potential cost of damages are exacerbated by poorly maintained river channels, gravel extraction from flood embankments, and construction in flood-risk areas.

As per the Initial USAID/Kosovo Climate Screening done in November 2016, the activities that are projected under this new program have a Low and Moderate climate risk ratings, which means that Climate change is unlikely to significantly impact achievement of development outcomes relative to other stressors and development challenges.

Analysis of Potential Environmental Impact

Component 1: Improved equitable, efficient, and transparent municipal governance which responds to citizens’ priorities with a focus on non-majority participation in democratic structures

Illustrative activities

Potential Climate Risk

Climate Risk Rating*

1.1 Strengthen local municipal governments and

administration to improve service provision to both majority and non-majority communities.

N/A Low

1.2 Improving the ability of municipalities to

articulate their municipal needs to the central-level government.

1.3 Strengthen municipal transparency and

outreach to all citizens.

1.4 Strengthen the central-level capacities in

outreach and governance to better support municipalities in addressing needs of the non-majority communities and improve municipal service delivery.

1.5 Facilitate linkages between municipalities.

Kosovo/Local Effective Governance 9

Climate Risk

Climate Risk Rating*

1.6 Small scale rehabilitation and refurbishment

works, such as: rehabilitation of village roads; bridges, rehabilitation or refurbishment of existing facilities (i.e. community centers, schools, health clinics, playgrounds); small scale rehabilitation of village-based water supply systems;

rehabilitation or repair of streetlights and sidewalks.

Moderate Moderate

Component 2: Increased active citizen participation of both majority and non-majority communities in municipal structures

Climate Risk

Climate Risk Rating*

2.1 Increase interaction between majority and

non-majority communities in joint priority settings.

N/A Low

2.2 Empower all communities to engage with the

municipalities and hold them more accountable.

2.3 Grants to CSOs, media, and other non-

governmental partners

Kosovo/Local Effective Governance 10

3. Recommended Environmental Determination:

Objective 1: Improved equitable, efficient, and transparent municipal governance which responds to citizens’ priorities with a focus on non-majority participation in democratic structures

Defined/Illustrative Activities Potential Impacts Mitigation Measures Recommended Threshold Determination

1.6 Small scale rehabilitation and

refurbishment works, such as:

* Rehabilitation of village roads;

* Rehabilitation of village bridges,

* Rehabilitation or refurbishment of existing facilities (i.e. community centers, schools, health clinics, playgrounds);

* Rehabilitation of village-based water supply systems;

* Rehabilitation or repair of streetlights and sidewalks.

Air, Water, Land, Human Health

Prior to initiating activities that have the potential to result in significant adverse environmental, health, and safety impact, the IP shall prepare an ERC/EMMP(s) in the format provided in the Annex 1 of this IEE. The COR/AOR, MEO, and BEO shall approve the ERC/EMMP(s) prior to implementation. For each site-specific activity, the ERC/EMMP shall be attached to the signed Certification of No Adverse or Significant Effects on the Environment (See ERC/EMMP Annex 1). This should be signed by the IP, COR/AOR, MEO, and BEO.. After the IP has finalized its activities at a specific site, the IP shall sign a Record of Compliance with the ERC/EMMP (see ERC/EMMP Annex 2) certifying that the organization met all applicable ERC/EMMP conditions and submit it to the COR/AOR. The COR/AOR shall keep the original for the project files and provide a copy to the MEO and BEO. The Record of Compliance certifies that all the mitigation measures that the IP confirmed would occur during project implementation did indeed occur. This annex is

Negative Determination with Conditions

Kosovo/Local Effective Governance 11 EE.BEU Standard Form: IEE.v3 completed at the end of the project.

All applicable local laws, regulations and standards and relevant mitigation measures from the following guidance shall be incorporated into the ERC/EMMP.

If the environmental review identifies a positive determination, the IEE will be amended to reflect this and to require an environmental assessment.

If these repairs are in ecologically sensitive areas (national forest, adjacent to endangered species habitat), the BEO will need to approve the environmental report.

Health and safety measures to protect worker health will be followed.

Proper health and safety are followed by all subcontractors; no use of ACM, lead pipes, or lead-based paint; materials containing formaldehyde must be in accordance with the European E0; proper disposal of construction debris; and proper site drainage.

If ACM must be removed, contractors must follow internal norms for abatement and disposal and provided workers with PPE.

An appropriate Onsite Waste Treatment System shall be installed for locations not connected to municipal sewers.

Best engineering practices will be applied to ensure an energy efficient design and operations.

Kosovo/Local Effective Governance 12

3.2 Recommended Environmental Determination

Categorical Exclusions:

A categorical exclusion is recommended for the following activities:

A categorical exclusion pursuant to 22 CFR 216.2(c)(2)(i) for technical assistance, or training programs except to the extent such programs include activities directly affecting the environment (such as construction of facilities, etc) is recommended for activities 1.1,1.2, 1.3,1.4, 1.5, 2.1, 2.2 and 2.3.

These activities related to training and capacity building, strengthen municipal-level governments’ and administrations’ role in terms of functioning and diversity by providing services to both majority and non-majority, facilitation of citizen engagement opportunities for citizen-to-citizen activities by the municipalities to bring majority and non-majority citizens together, and public outreach and awareness activities.

A categorical exclusion is recommended pursuant to 216.2(c) (2) (iii) for analyses, studies, academic or research workshops, and meetings is recommended for activities 1.1,1.2, 1.3,1.4, 1.5, 2.1, 2.2 and 2.3. Under these activities are covered also surveys and analyses, meetings and events that may be conducted during the course of the project.

Per 22 CFR 216.2(c)(1), neither an IEE nor an EA is required for activities which are determined to fall within one or more of the classes of activities listed in 22 CFR 216.2(c)(2).

Negative Determination with Conditions:

A negative determination with conditions pursuant to 22 CFR 216.3(a)(2)(i) is recommended for activities that will be supported under 1.6 for small scale rehabilitation activities.

Kosovo/Local Effective Governance 13

3.3 Terms and Conditions

3.3.1 For Activity 1.6 Prior to initiating activities that have the potential to result in significant adverse environmental, health, and safety impact, the IP shall prepare an ERC/EMMP(s) in the format provided in the Annex 1 of this IEE. The COR/AOR, MEO, and BEO shall approve the ERC/EMMP(s) prior to implementation.

For each site-specific activity, the ERC/EMMP shall be attached to the signed Certification of No Adverse or Significant Effects on the Environment (See ERC/EMMP Annex 1). This should be signed by the IP, COR/AOR, MEO, and BEO.. After the IP has finalized its activities at a specific site, the IP shall sign a Record of Compliance with the ERC/EMMP (see ERC/EMMP Annex 2) certifying that the organization met all applicable ERC/EMMP conditions and submit it to the COR/AOR. The COR/AOR shall keep the original for the project files and provide a copy to the MEO and BEO. The Record of Compliance certifies that all the mitigation measures that the IP confirmed would occur during project implementation did indeed occur. This annex is completed at the end of the project.

3.3.2 ERC/EMMPs shall be captured in annual work plans, and therefore budgeted for and reviewed for adequacy at least annually.

3.3.3 Changes in activities and their associated ERC/EMMPs shall necessitate amending the IEE or issuing a Memo to the File (depending on the extent and potential impact of the changes).

3.4 USAID Monitoring and Reporting

3.4.1 The AOR/COR, with the support of the MEO, is responsible for monitoring compliance of activities by means of desktop reviews and site visits.

3.4.2 If at any time the project is found to be out of compliance with the IEE, the AOR/COR or MEO shall immediately notify the BEO.

3.4.3 A summary report of Mission’s compliance relative to this IEE shall be sent to the BEO on an annual basis, normally in connection with the preparation of the Mission’s annual environmental compliance report required under ADS 203.3.8.5 and 204.3.3.

3.4.4 The BEO or his/her designated representative may conduct site visits or request additional information for compliance monitoring purposes to ensure compliance with this IEE, as necessary.

3.5 Implementing Partner (IP) Monitoring and reporting

3.5.1 If an individual activity is found to pose significant adverse environmental effects that have not been identified and addressed in the attached EMMP(s) or EMMPs that were subsequently approved for the project, new EMMPs shall be developed to include environmental safeguards for such effects.

3.5.2 IPs shall report on environmental compliance requirements as part of their routine project reporting to

USAID.

3.6 Mandatory Inclusion of Requirements in Solicitations, Awards, Budgets and Workplans

3.6.1 Appropriate environmental compliance language, including limitations defined in Section 6, shall be incorporated into solicitations and awards for this activity and projects budgets shall provide for adequate funding and human resources to comply with requirements of this IEE.

3.6.2 Solicitations shall include Statements of Work with task(s) for meeting environmental compliance requirements and appropriate evaluation criteria.

3.6.3 Environmental mitigation and monitoring requirements, when available, shall also be included in solicitations and awards.

3.6.4 The IP shall incorporate conditions set forth in this IEE into their annual work plans.

Kosovo/Local Effective Governance 14 EE.BEU Standard Form: IEE.v3

3.6.5 The IP shall ensure annual work plans do not prescribe activities that are defined as limitations, as defined in Section 6.

3.6.6 The USAID Mission will include an indicator for environmental compliance as part of the project’s performance monitoring plan. [If an IEE has a threshold determination of negative determination with conditions, then a possible indicator is if the IP did the ERC/EMMP.]

4 Limitations of the IEE: This IEE does not cover activities (and therefore should changes in scope implicate any of the issues/activities listed below, a BEO-approved amendment shall be required), that:

4.4.1 Normally have a significant effect on the environment under §216.2(d)(1) [See http://www.usaid.gov/our_work/environment/compliance/regulations.html]

4.4.2 Support project preparation, project feasibility studies, engineering design for activities listed in §216.2(d)(1);

4.4.3 Affect endangered species;

4.4.4 Result in wetland or biodiversity degradation or loss;

4.4.5 Support extractive industries (e.g. mining and quarrying);

4.4.6 Promote timber harvesting;

4.4.7 Provide support for regulatory permitting;

4.4.8 Result in privatization of industrial or infrastructure facilities;

4.4.9 Lead to new construction of buildings or other structures;

4.4.10 Assist the procurement (including payment in kind, donations, guarantees of credit) or use (including handling, transport, fuel for transport, storage, mixing, loading, application, cleanup of spray equipment, and disposal) of pesticides or activities involving procurement, transport, use, storage, or disposal of toxic materials and /or pesticides (cover all insecticides, fungicides, rodenticides, etc. covered under the Federal Insecticide, Fungicide, and Rodenticide Act); and

4.4.11 Procure or use genetically modified organisms.

5. Limitations of the IEE: This IEE does not cover activities (and therefore should changes in scope implicate any of the issues/activities listed below, a BEO-approved amendment shall be required), that:

5.1 Normally have a significant effect on the environment under §216.2(d)(1) [See http://www.usaid.gov/our_work/environment/compliance/regulations.html

5.2 Support project preparation, project feasibility studies, engineering design for activities listed in

§216.2(d)(1);

5.3 Affect endangered species;

5.4 Result in wetland or biodiversity degradation or loss;

5.5 Support extractive industries (e.g. mining and quarrying);

5.6 Promote timber harvesting;

5.7 Provide support for regulatory permitting;

5.8 Result in privatization of industrial or infrastructure facilities;

5.9 Lead to new construction of buildings or other structures;

5.10 Assist the procurement (including payment in kind, donations, guarantees of credit) or use

(including handling, transport, fuel for transport, storage, mixing, loading, application, cleanup of spray equipment, and disposal) of pesticides or activities involving procurement, transport, use, storage, or disposal of toxic materials and /or pesticides (cover all insecticides, fungicides, rodenticides, etc. covered under the Federal Insecticide, Fungicide, and Rodenticide Act); and

5.11 Procure or use genetically modified organisms.

6. Revisions

Kosovo/Local Effective Governance 15 EE.BEU Standard Form: IEE.v3

6.1 Under §216.3(a)(9), if new information becomes available that indicates that activities covered by the IEE might be considered major and their effect significant, or if additional activities are proposed that might be considered major and their adverse effect significant, this environmental threshold decision will be reviewed and, if necessary, revised by the Mission with concurrence by the BEO. It is the responsibility of the USAID COR/AOR to keep the MEO and BEO informed of any new information or changes in the activity that might require revision of this IEE.

Kosovo/Local Effective Governance 16

7. Recommended Environmental Threshold Decision Clearances:

Approval :

James Hope, Mission Director

Date

Clearance:

Clearance:

Mike de la Rosa, Deputy Mission Director

Perihan Ymeri Ustaibo, Mission Environmental Officer

Clearance :

Clearance :

Miranda Jolicoeur, Acting DGO Director

Martina Perino, DGO

Concurrence:

Mark Kamiya E&E Bureau Environmental Officer

Distribution:

IEE File MEO (to also provide a copy to AOR/COR)

Kosovo/Local Effective Governance 17

ENVIRONMENTAL REVIEW CHECKLIST (ERC) for Identifying Potential Environmental Impacts of Project Activities and Processes/ ENVIRONMENTAL MITIGATION AND MONITORING PLAN

(EMMP)

ERC/EMMP

for [Activity Name]

Implemented under: [Project Name]

DCN: [of Parent IEE]

Prepared by: [Implementer]

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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) and Environmental Mitigation and Monitoring Plan (EMMP) is intended for use 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 EMMPs that can effectively avoid or adequately minimize the identified effects. This ERC/EMMP may be substituted for other ERC/EMMP versions that may have been attached to previous 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. In turn, the COR/AOR should contact their Mission Environmental Officer (MEO) if they have any questions. In special circumstances and with approval of the BEO it is possible to have one very comprehensive ERC/EMMP for multiple projects if they are similar in scope. (When preparing the ERC/EMMP, please indicate “not applicable” for items that have no bearing on the activity. The ERC/EMMP should be completed by an environmental specialist. The ERC/EMMP must be completed and approved prior to the activity beginning.)

A. Activity and Site Information

Project Name: (as stated in the triggering IEE)

Mission/Country:

DCN of Most Recent Triggering IEE or Amendment:

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. Amount of activity

3. Location of activity

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

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

6. Implementation timeframe and schedule

7. Detailed description of activity, items that will be purchased (This section should fully describe what funds are being used for.)

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

9. 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

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

11. Photos of site, items to be purchased, engineering construction plans (when available)

C. Activity-Specific Baseline Environmental Conditions

Kosovo/Local Effective Governance 19 EE.BEU Standard Form: IEE.v3

1. Population characteristics

2. Geography

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

4. Current land use and owner of land

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, European Union, 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 yes answers and likely to have a 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? If yes, attach the plans to the ERC/EMMP.

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?

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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 yes, then there should be an approved, current PERSUAP on file and discuss how it will be used in this situation. 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?