ecd.usaid.gov · Web viewTo determine mitigation measures for adding natural gas activities that will increase the ceiling, time, and expand SoW by adding Gas SOW

DCN: 2018-BOS-003

US Agency for International Development (USAID)USAID Bosnia and Herzegovina

Amendment to the Initial Environmental Examination (IEE) for the USAID Energy Investment Activity

Program/Project/Activity Data

Activity/Project Name: USAID Energy Investment Activity (EIA)Assistance Objective: Economic DevelopmentProgram Area: Economic GrowthCountry(ies) and/or Operating Unit: USAID/ Bosnia-Herzegovina

Originating Office:USAID/Bosnia & Herzegovina, Economic Development

Date: 11/24/17

PAD Level IEE: Yes NoSupplemental IEE: Yes NoRCE/IEE Amendment: Yes No

DCN of Original RCE/IEE:

DCN of Amendment(s): n/a

If Yes, Purpose of Amendment (AMD):To determine mitigation measures for adding natural gas activities that will increase the ceiling, time, and expand SoW by adding Gas SOW

DCN(s) of All Related EA/IEE/RCE/ER(s): PAD-level IEE: DCN: 2014-BOS-009Energy Investment Activity IEE: DCN: 2014-BOS-016

Implementation Start/End: AMD: FY 2018- 9/2019 LOP: 9/2014-9/2019

Funding Amount: LOP Amount: $7.18 million (PAD is $32.5)

Contract/Award Number (if known): AID-168-C-14-00002IEE Expiration Date (if any): n/a Reporting due dates (if any): n/aRecommended Environmental Determination:Categorical Exclusion: Positive Determination: Negative Determination: Deferral:

Additional Elements:Conditions: Local Procurement: Government to Government: Donor Co-Funded:

1. Background and Project Description 1.1. The purpose of this IEE is to recommend a Threshold Decision applicable to the scope of work

proposed under the Energy Investment Activity (EIA) award modification to include work in the BiH gas sector. The modification will increase the award ceiling by $1.7 million. The activity will not be extended beyond its September 2019 close-out date; however this IEE reflects an “extension” through September 2019 in order to indicate changes to the IEE, per the Bureau Environmental Officer’s request. The initial Statement of Work remains unchanged from the originally approved IEE – aside from the added activities in the gas sector – and all conditions of the original IEE remain in effect. All added gas sector activities will be technical assistance (TA)

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DCN: 2018-BOS-003in order to bring the BiH gas sector in line with European Union Directives and Energy Community Treaty requirements.

Additional Natural Gas activities will include:Under Component 1: Address impediments to increased investment in the energy sector in BiH will add: Analysis and recommendations to remove obstacles for gas sector investment.

1.1. Review of gas pipelines development and sources of gas supply in Europe and Azerbaijan in the context of security of supply, with a special focus on how these developments could affect the gas network and gas consumption in BiH. In addition, this analysis will pay particular attention to the impact of these developments on BiH alternative gas supply sources. Key inputs for this review will be the EU Projects of Common Interest (PCI) and Projects of Energy Community Interest (PECI).1.2. Recommendations for the development of the BiH gas pipeline network will be developed based on the most realistic and feasible trans-European gas network development. The framework for these recommendations will be security of gas supply and ensured alternative gas supply sources, as well as PCI and PECI. Contractor will identify the environmental sensitive areas, waterways, wetlands, protected areas, etc. as they look at options to site the pipeline network. Contractor will also identify buffer zones to the areas for safety/ease of maintenance and will try to avoid extreme elevations, if possible1.3. Development of recommendations for a minimum legal and regulatory framework for the gas sector that will make a BiH gas network connection with the most realistic/advanced trans-European gas pipeline, feasible.

Under Component 2. Address retail market deficiencies in BiH and contribute to a single economic space in BiH will add: Analysis and recommendations for necessary legislative and regulatory framework for development of natural gas market processes.

2.1. Develop a gap Analysis of existing BiH gas legislation and regulations. In addition, this analysis will consider the existing draft state Law on Regulator for Electricity, Natural Gas, Transmission and Electricity Market in Bosnia and Herzegovina in Order to identify changes that must be made in the Law to make connection of the BiH gas network to alternative gas supply sources possible. Particular attention will be paid to internal gas market development as well as integration of the BiH gas sector into the regional gas market. 2.2. The gap analysis will also address impediments for investment in the gas sector caused by complex and, in certain cases, a contradictory or opaque permitting process. In particular, the permitting regime to build cross border gas pipelines will be analyzed and recommendations to eliminate them will be proposed. 2.3. Draft changes in the existing or draft laws and regulations to enable gas sector development.

Under Component 3: No gas sector activities will be added under this component.

Under Component 4: Cross-cutting: advance EU accession requirements in the energy sector for BiH will add: On-going technical assistance to MOFTER and other relevant stakeholders in order to establish a legislative framework for the gas sector in BiH in line with EU Directives. Activities in this component will also help create robust, independent institutions that can promote and effectively regulate a more environmentally sustainable, secure, transparent and EU-oriented market-based energy sector.

Under Component 5. Cross-Cutting Component Public Outreach will add: EIA will continue its effective public outreach effort to inform energy sector stakeholders and the public about activities it is conducting under Components 1 and 2. Also, the natural gas

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DCN: 2018-BOS-003sector will become part of the EIA public outreach activities, including conferences on natural gas, presentations at the Energy Summit, and general public outreach, which would involve the provision of sector information to the media for its general understanding.

Deliverables will be per each Component:Component 1:Report on the most likely gas projects that could provide alternative gas supply to BiH, their current status of development and routes, cost, financing sources, and the projected time schedule. Recommendations on the most viable option(s) for BiH connection to alternative gas supply projects, along with the needed financial means, construction schedule, and a detailed description of the permitting process and procedures to get building permit.

Component 2:Report that addresses impediments for investment in the gas sector, including a complex and, in certain cases, a contradictory or opaque permitting process. Recommendations for changes that must be made in the legislation and regulations to make connection of the BiH gas network to alternative gas supply sources possible.Gap Analysis of the legislation and regulations and prescription of minimum legal and regulatory framework to connect alternative BiH gas supply pipeline with an EU/EnC pipeline project. This will take into account new gas supply direction (TAP) from Turkey/Azerbaijan.

Component 3:None additional

Component 4:Explanatory and preparatory memos for activities related to the gas, minutes of MOFTER meetings facilitated by EIA, and MOFTER capacity building for the establishment of the fundamental legislative framework for the BiH gas sector.

Component 5:Public outreach and lobbying plan for the establishment of the fundamental legislative framework for the BiH gas sector, including promotion of effective regulation, to achieve a more environmentally sustainable, secure, transparent and EU-oriented market-based energy sector.

1.2. Activity Overview: Engagement in Bosnia and Herzegovina’s (BiH) energy sector is a priority for US foreign development assistance given its economic significance and its key relevance for BiH’s European Union (EU) accession and European energy security. Energy sector reform is also paramount to strengthen transparency, reduce corruption, advance EU accession, and promote European energy security. Substantial work has been accomplished in the BiH energy sector under the steady support of USAID. The country has experienced the transition of an electricity sector with only three integrated utilities to the current basically reformed sector and a natural gas sector that is poised to track the same baseline reform work as the electricity sector. USAID EIA will start with providing technical assistance in the efforts to remove the obstacles for investment in the natural gas sector.

1.3. Activity Description: Economic development in BiH is highly dependent on effective institutions. BiH has failed to increase transparency in government institutions and reduce systemic corruption, both of which are necessary to augment, strengthen, and diversify private sector investment and growth. If the aforementioned problems are not addressed immediately, BiH will remain unattractive to investors as other countries are advancing at a faster pace than BiH. The policy/regulatory activities under this project will focus on energy. The following comprehensive set of activities will be implemented during the life of the project: assist the BiH energy community to create an

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DCN: 2018-BOS-003investor-friendly legislative framework and to continue its integration of the energy sector into regional and EU energy markets.

As the purpose of Energy Investment Activity is to increase investments in energy sector in BiH and advance BiH accession process related to energy sector, our targeted assistance will be focused on following EC Energy Directives in regard to BiH as prescribed by Energy Community Treaty; and specifically our assistance will complement the EC assistance that will take the lead in this area. By implementing recommendations from the Energy Community Treaty, BiH will make progress related to the EU accession requirements.

USAID Bosnia and Herzegovina seeks to maximize its programming to catalyze much-needed energy sector investment that will have additional benefits of addressing urban pollution and reducing Russian influence. USAID programming promotes transparent regulation of the natural gas sector as called for under the Energy Community Treaty, which is an essential step in providing Western investors the confidence to engage in local development projects that will open alternative supplies of natural gas. These alternate supplies will provide cleaner heating than existing coal and wood-based options, and more importantly, will counter-Russian influence by reducing overreliance on Russian gas, thereby limiting a key economic lever of Russian influence.

USAID plans to address natural gas market development in BiH via a combination of regional and bilateral programming. Regional programming will focus on harmonization of operational principles of the BiH natural gas market rules and infrastructure planning capability with those of neighbor countries. Given the complexity of relationships between the Entities within BiH, bilateral programming will focus on the detailed interworking of developing a regulatory and commercial framework for the natural gas market inside of BiH, specifically focused on developing EU-compliant gas sector legislation. The combination of regional harmonization and bilateral development position BiH as a participant in a region-wide market, while providing investor certainty within the country, providing an investment pathway that would limit future dependence on a singular natural gas supplier.

2. Baseline Environment Information

2.1. Locations Affected and Environment Context

BiH has a state or national level government, which is administratively subdivided into two entity governments: the FBiH and RS. The FBIH is further subdivided into 10 cantons. Municipal level is the lowest form of government. In addition to the entities, which are divided into municipalities, there is the Brcko District.

There are no institutions at the State level that are entirely dedicated to either environmental protection or agricultural development. In other words, there is no State level Ministry for the Environment or Agriculture. Neither is there Law on environment at the State level. As per the Constitution, Entity level governments regulate environmental issues through their laws, regulations and standards.

However, Ministry for Foreign Trade and Economic Relations (MoFTER) has been delegated to manage certain environmental and agricultural issues at the State level in the absence of dedicated State level Ministries as per the Law on Ministries and other bodies of administration of BiH (Official Gazette of BiH, No. 5/03) enacted in March 2003. MoFTER is responsible to define and coordinate activities between the Entity authorities and institutions at the international level, in the field of environmental protection, agriculture, energy and natural resources and administer enforcement of relevant laws and other regulations.

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Bosnia and Herzegovina continues to seriously and persistently breach Energy Community law by its failure to comply with the provisions of the gas acquis from the Second Energy Package. After its first decision in Case ECS-8/11 adopted on 1 October 2013 under Article 91 of the Treaty, the Ministerial Council has adopted three more decisions under Article 92 as from 2014, including imposing measures in 2015. After a brief suspension of the measures by the Ministerial Council on 14 October 2016, the measures were resumed again on 1 April 2017, as the country did not honor its commitment to adopt a State law transposing the acquis in the gas sector. The Secretariat – as invited by the Ministerial Council - will request a decision from the Ministerial Council at its next meeting in 2017 on maintaining these measures further. This activity will support energy reforms in BiH and enable progress toward fulfilling Energy Community Treaty obligations.

The following Energy Community documents (acquis) related to the gas sector are binding for Bosnia and Herzegovina, according to the Energy Community Treaty, and thus specifically apply to this activity:

DIRECTIVE 2009/73/EC of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC;

Ministerial Council of the Energy Community adopted Decision 2011/02/MC-EnC for the implementation of the Directive 2009/73/EC in the Contracting Parties (including BiH);

REGULATION (EC) 715/2009 of 13 July 2009 on conditions for access to the natural gas transmission networks and repealing Regulation (EC) 1775/2005;

DIRECTIVE 2004/67/EC of 26 April 2004 concerning measures to safeguard security of natural gas supply;

Ministerial Council of the Energy Community adopted Decision 2007/06/MC-EnC on the implementation of Directive 2004/67/EC.

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

In order to improve and standardize environmental legislation, both entities drafted a set of 6 environmental laws that are largely in accordance with EU acquis: The Framework Law on Environmental Protection;The Law on Air Protection;The Law on Water Protection;The Law on Waste Management;The Law on Nature Protection, andThe Law on the Fund for Environmental Protection.

These laws represent a framework for the legal protection of the environment, setting forth basic principles of the protection, defining basic notions and terms, as well as authorities responsible for policy implementation. They also lay down basic rules for drafting specific measures in the function of environmental protection policy implementation, as well as that of environment conservation and improvement.In 2008, Bosnia and Herzegovina (BiH) began its EU accession process by signing the Stabilization and Association Agreement (SAA). The implementation of the EU’s environmental acquis communautaire (acquis), its Community law, is integral to this process.1 The acquis

1 Patrick J. Kapios, Environmental Enlargement in the European Union: Approximation of the AcquisCommunautaire and the Challenges that it Presents for the Applicant Countries, 2 SUSTAINABLE DEVELOPMENT LAW & POLICY 4, 4 (2002), available at http://digitalcommons.wcl.american.edu/cgi/viewcontent.cgi?article=1276&context=sdlp.

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DCN: 2018-BOS-003comprises over two hundred EU treaties, laws, and resolutions, as well as the European Court of Justice’s judgments.2 One of the acquis’ thirty-one chapters is devoted to environmental rules and regulations.3 EU environmental policies aim to promote a high level of environmental protection within the EU.As such, Member States and candidate states must adapt their environmental policies to their regions while ensuring the preservation, protection, and improvement of the quality of the environment.4 The EU imposes rigorous environmental standards on its Member States.Numerous EU treaties, directives, and regulations recognize sustainable development and environmental preservation pertaining to climate change, water, and air quality, waste management, nature protection, industrial pollution control, and trans border water management. EU Member States and candidate states are required to integrate such environmental protection. Regional cooperation helps to ensure that Member States and candidate states meet the EU’s environmental requirements. EU Member States have been able to ensure transborder cooperation through the development of legal and political frameworks, bilateral agreements, and consultations with states, stakeholders, and the public at large. This cooperation has utilized assessment procedures, management plans, and significant research to ensure sustainable environmental development within a transborder context.

The Contactor will have to adhere to all Acquis Communautaire (a comprehensive collection of European Union (EU) laws and obligations spanning from 1958 to the present day). Legal Basis for European Union Environmental Obligations is: Acquis Communautaire The Treaty Establishing the European Community Defines EU Member State policy on the environment. EU Directive on the Assessment of Certain Plans and Programs on the Environment Member States conduct environmental assessments during the development of a plan, prior to its adoption, and prior to its submission to the Member

The 2012 Progress Report on Bosnia & Herzegovina (BiH) states that BiH had made minimal progress in the area of environmental protection. The Republika Srpska had adopted the New Law on Environmental Protection, which the EU considers as a step towards conforming with the Strategic Environmental Assessment Directive. However, the European Commission (EC) highlights that BiH had yet to develop and implement a Framework Law on the Environment or adopt the Environmental Impact Assessment Directive at the federal or local levels. Additionally, BiH had yet to implement the Espoo Convention at a trans-border level. Furthermore, the BiH public participates only minimally in environmental decisions and does not have broad access to environmental information. BiH had made some progress toward alignment with EU requirements in air quality, as Republika Srpska had adopted air protection legislation. However, the Progress Report notes that a state-wide air quality plan had not been developed. Additionally, BiH had not progressed in waste management programs, despite adopting a waste management plan directive, because of insufficient funding by the state, and the state lacks a plan to effectively manage waste and recycling. Regarding water quality, the Report notes that the BiH Federation had developed a water management program that aligns with the Urban Waste Water Treatment Directive. However, the plan has yet to be effectively implemented and is hindered by administrative shortcomings, particularly among trans-regional BiH water management. The EC encourages BiH to further its alignment with the EU climate change obligations by making environmental mitigation commitments that are in line with those of EU Member, and candidate, States regarding

2 Vaughne Miller, The EU’s Acquis Communautaire, INTERNATIONAL AFFAIRS AND DEFENSE SECTION, SN/IA/5944 (Apr. 26, 2011), available at www.parliament.uk/briefing-papers/sn05944.pdf.3 Patrick J. Kapios, Environmental Enlargement in the European Union: Approximation of the AcquisCommunautaire and the Challenges that it Presents for the Applicant Countries, 2 SUSTAINABLE DEVELOPMENT LAW & POLICY 4, 6 (2002), available athttp://digitalcommons.wcl.american.edu/cgi/viewcontent.cgi?article=1276&context=sdlp.4 Treaty Establishing the European Community art. 130r(2) (1957), available at

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DCN: 2018-BOS-003climate change. The European Commission reports that BiH’s climate change policy remains far from the climate acquis and contains significant shortcomings in administrative direction and financial support. The EC urges BiH to implement the acquis and to develop a state-wide Environmental Protection Agency. BiH must focus on a developing a uniform legal framework, institutional mechanisms, and a monitoring system for environmental issues. Additionally, BiH must share information regarding environmental issues with all BiH institutional authorities, as well as the public.

The latest 2016 EU Country progress Report for Bosnia and Herzegovina quotes: “The country continues to fall behind in fulfilling its international commitments stemming from the Energy Community. In the coming year, Bosnia and Herzegovina should in particular: …urgently adopt the law on gas in order to comply with Energy Community Treaty obligations.” Because of the failure of BiH to adopt state-level gas legislation, for BiH are introduces sanctions in March 2017. This additional gas activity to EIA activity will offer technical assistance to BiH to overcome this failure, as per iterated objectives described above.

2.3. Country/Ministry/Municipality Environmental Capacity Analysis

FBiH: Environmental management in the Federation BiH is uneconomical and unsustainable. The main reason for this serious lack of coordination, disorientation, and duplication between the different levels of administration responsible for environmental issues lies in the fact that institutionalized mechanisms and channels for exchange of information virtually do not exist. In addition to the relevant ministries involved in the environment and biodiversity, the Federation has quite an impressive number of specialist institutions that provide expert consulting, inspection and monitoring, and/or services that protect citizens, property and the environment/biodiversity from natural disasters. These institutes and agencies work under relevant ministries or report directly to the government. While the structure and number of institutions is rather impressive, the lack of inter-ministry coordination on all levels, as well as weak information exchange, are serious issues that impede and obstruct efficient environment/biodiversity management. Additionally, inadequate experience in environmental management of ministerial staff often results in serious gaps between the legal requirements and actual implementation.The environmental protection legal framework in FBiH consists of five laws that were developed

and adopted in 2003 at the entity level:

Law on Environmental Protection;Law on Nature Protection;Law on Waste Management;Law on Air Protection; andLaw on Environmental Protection Fund.

Adoption of these laws was a crucial step towards harmonizing BiH legislation with the EU. Although, FBiH adopted several of the sub-laws that harmonized many aspects of environmental protection with the EU legislation, the process of harmonization is far from finished. The process of harmonization must continue in order for FBiH to meet all EU directives related to regulating the environment. The main impediments to harmonization are the lack of a vision and the lack of a strategy for improving the efficiency of the harmonization processes. Furthermore, harmonization of legislation is required within the legal structure in the entity and cantonal governments. The environmental laws adopted in 2003 were at the entity level, and some cantons have never adopted cantonal laws. In addition, some cantonal laws were adopted prior to the year 2003, so many provisions in these laws are inconsistent with the 2003 entity environmental laws. RS: The institutional framework for environment in the RS is simpler than the one in FBiH. There are only two levels of administration in the RS: entity and local. Similarly to FBiH, there are

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DCN: 2018-BOS-003public enterprises tasked with specific consulting, monitoring or other services related to the environment.

At the entity level, the Ministry for Spatial Planning, Construction, and Ecology is responsible for all issues related to the environment. This Ministry is responsible for drafting and adopting laws, implementing laws relevant to environmental protection, recommending areas to be protected, and monitoring and supervising work of local/municipal administrations. Within this ministry, there is a specialized department that handles environmental issues. Some responsibilities at the entity level related to the environment are also delegated to the Ministry of Agriculture, Forestry and Water Works; the Ministry of Education; and the Ministry of Trade and Tourism. The roles and responsibilities of each of these ministries have been defined by the Law on Ministries (2002). This same law provides for the role of the Public Institute for Protection of Cultural, Historical and Natural Heritage of Republika Srpska. This institution is tasked with all works related to protected areas, including updating the register of protected areas. They also provide expert and consulting services related to protection of the RS. In its work, the institute cooperates with other public institutions in the RS, such as faculties, museums, etc. In addition, and similarly to FBiH, there are public enterprises that manage natural parks. In the RS, there are two such institutions that are responsible for the national nature parks, Sutjeska and Kozara. Also, there is a public enterprise “Srpske Sume” that is responsible for overall management of all forests in the RS. The most significant legislative reform related to the environment in the RS was the adoption of a set of entity laws on the environment. This set of five laws was drafted and adopted by both entities at the same time and are harmonized with EU legislation regulating the environment. Furthermore, and similarly to FBiH, there are other pieces of legislation that regulate certain aspects of the environment that were adopted in the RS.

These include the following:

Law on Forests (2003);Law on Hunting (2002);Law on National Parks (2005);Law on Waters (2006);Law on Agricultural Lands (2006);Law on Fishing (2002);Law on Communal Police (2003);Law on Fees for Utilizing Natural Resources for Energy Generation (2003); andLaw on Environmental Fund (2002).

The RS is facing some of the same issues as FBiH, including the requirement for full harmonization of its legislation with EU regulations. As previously stated, in order to harmonize its legislation with the EU, the BiH government started revising existing laws in 2006. This project was financed by the EC with the ultimate goal of monitoring the level of harmonization with EU regulations.

2.4. Sustainability Analysis

Natural Gas sector reform that this activity will address will contribute directly to encouraging the sustainability of Bosnia and Herzegovina’s energy sector and improving its environmental aspects, as policy interventions, when done according to the EU Directives on Gas, listed above will outlines the typical roles and responsibilities of key stakeholders in enhancing the gas sector’s contribution to sustainable aspect of environment. Activity will strengthen the capacity of the MOFTER and key sector decision makers, like three energy regulators, thus supporting sustainable improvements in management functions and their regulatory decision making process.

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DCN: 2018-BOS-0032.5. Climate Change Vulnerability Analysis

The Contractor will make sure that the policy makers and gas sector managers should be aware and in full respect of the evolving information on climate change impacts as in the activities, that is preparatory, to sound decision making on current environmental factor in accordance to the Energy Directives on gas and Environmental Directives listed above. All natural gas policies must ensure effective management strategy that will serve adaptation to climate change and uncertainty. An effective gas sector management system depends, to a large extent, on a well-functioning institutional framework and the treatment of all climate change factors as an economic and social good, both of which are a prerequisite for adaptation to climate variability.

Analysis of Potential Environmental Impact

Energy Investment Activity may contribute indirectly to environmental and biodiversity conservation since economic growth, if done in a sustainable manner, in general stimulates environmental management. The successful management and protection of natural resources is predicated on a stable government, sound policy frameworks and functioning fiscal system, transparency, accountability and vibrant private sector.

Support in energy sector reforms could have positive environmental effects if this support is directed at energy policy, as prescribes by EU Energy Directives (which will be done in this case), clean energy, renewables and energy efficiency. This could also help mitigate climate change impacts and address potential effects of climate change. Furthermore, economic development that excludes sustainable development planning can have adverse effects on the environment. A common misperception is that the activities that are not directly addressing the environment, such as policy formulation or capacity building of local governments, could not be harmful to the environment. Therefore, additional precaution is advised during the planning and administration phases of this project.

2.6. Component 1: Analysis and recommendations to remove obstacles for investment in gas sector.

Defined/Illustrative Activities Potential Impacts

Potential Climate Risk

Climate Risk Rating

Opportunities for Climate Resiliency

1.1Technical assistance (TA) to review gas pipeline development and sources of gas supply in order to increase BiH’s energy security.

Air, water, soil, waste, human health Low Low The implementer must incorporate numerous EU treaties, directives, and environmental regulations pertaining to climate change, water, air quality, waste management, nature protection, industrial pollution control, and trans border water management. As a signatory of Energy Treaty, BiH is required to fully integrate such environmental protection. This is required for all activities listed in this

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Climate Risk Rating


IEE.

1.2Technical assistance (TA) to recommend options for developing the BiH gas pipeline network

Air, water, soil, waste, human health

Low Low The implementer is required to assist in revising legislation and regulations in accordance with EU energy and environment directives and Energy Treaty requirements, and must meet all applicable EU environmental standards.

1.3.TA to develop recommendations for a minimum legal and regulatory framework for the BiH gas sector.


Low Low Opportunity to include all legislation and regulations in accordance with EU energy and environment Acquis, per Energy Treaty requirements.

2.7. Component 2: Analysis and recommendations for necessary legislative and regulatory framework for development of natural gas market processes.



Climate Risk Rating


2.1Develop a gap Analysis of existing BiH gas legislation and regulations. In addition, this analysis will consider the existing draft state Law on Regulator for Electricity, Natural Gas, Transmission and Electricity Market in

Air, water, soil, waste, human health Low risk

Low A Gap Analyses will identify legislation and regulations that are not in accordance with EU energy and environment Acquis, per Energy Treaty requirements. Stakeholders will

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Climate Risk Rating


Bosnia and Herzegovina in Order to identify changes that must be made in the Law to make connection of the BiH gas network to alternative gas supply sources possible. Particular attention will be paid to internal gas market development as well as integration of the BiH gas sector into the regional gas market. Also, consider in this activity the need to identify permanent utility corridors so other development does not occur by the pipeline network.

use this analysis to improve legislation so that it is in line with EU requirements.

2..2.The gap analysis will also address impediments for investment in the gas sector.


Low Low All draft changes of laws and regulations must fully include relevant and obligatory EU energy and environment Acquis, per Energy Treaty requirements

2.3.Draft changes in the existing or draft laws and regulations to enable gas sector development.


Low risk

Low All draft changes of laws and regulations must fully include relevant and obligatory EU energy and environment Acquis, per Energy Treaty requirements.

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2.8. Component 3: Nothing will be added

2.9. Component 4: On-going technical assistance to MOFTER and other relevant stakeholders on establishment of the legislative framework for gas sector in BiH, including assistance to public outreach and independent institutions that can promote and effectively regulate a more environmentally sustainable, secure, transparent and EU-oriented market-based energy sector.



Climate Risk Rating


4.1.Provide TA to MOFTER and host country partners to advance implementation of the Third Liberalization Package in relations to all the above components


Low risk.

Low TA will focus on assisting MOFTER in implementing EU Energy and Environmental regulations pertaining to climate change, water, and air quality, waste management, nature protection, industrial pollution control, and trans border water management, per Energy Treaty as stipulated by the EU’s Third Energy Package.

2.10. Component 5. EIA will continue its effective public outreach effort

Defined/Illustrative Activities Potential Impacts5.1.Provide TA to MOFTER and other partners for public outreach effort to inform energy sector stakeholders and the public about activities it is conducting in its new gas additional activities in Components 1 and 2.

No impact Anticipated.

3. Recommended Environmental Actions

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Bosnia and Herzegovina / Energy Investment Activity 14

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Defined/Illustrative Activities Potential Impacts Mitigation Measures

Recommended Threshold

Determination

Component 1: Analysis and recommendations to remove obstacles for investment in gas sector.

1.1.Technical assistance (TA) to review of gas pipelines development and sources of gas supply in the context of security of supply.1.2. Technical assistance (TA) to recommend proposals for the development of the BiH gas pipeline network1.3. TA to develop recommendations for a minimum legal and regulatory framework for the BiH gas sector.

Air, water, soil, waste,

human health

Identification and analysis of applicable EU Acquis requirements and other relevant environmental considerations. Revised legislation and regulation will be in accordance with EU requirements and must meet all applicable EU environmental standards. The implementer will prepare such analysis as part of the intervention and the analysis will be subject to approval by the COR and MEO in consultation with the BEO.

Negative Determination

Under Component 2:Analysis and recommendations for necessary legislative and regulatory framework for development of natural gas market processes.2.1. Technical Assistance (TA) to develop a Gap Analysis of existing BiH gas legislation and regulations.2.2. Provide TA to develop gap analysis to address impediments for investment in the gas sector2.3. Provide TA to draft changes in the existing or draft laws and regulations to enable gas sector development.


human health

Identification and analysis of applicable EU Acquis requirements and other relevant environmental considerations. Revised legislation and regulation will be in accordance with EU requirements and must meet all applicable EU environmental standards. The implementer will prepare such analysis as part of the intervention and the analysis will be subject to approval by the COR and MEO in consultation with the BEO.

Negative Determination

Under Component 4: Advancing EU requirements4.1.Provide TA to MOFTER and host country partners to advance implementation of the Third Liberalization Package in relations to all the above componentsframework for the BiH gas


human health

Identification and analysis of applicable EU Acquis requirements

Negative DeterminatioBosnia and Herzegovina / Energy Investment Activity 15

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3.2. Recommended Environmental Determination:

Categorical Exclusions: A categorical exclusion is recommended for the following identified components under 22 CFR 216.2(c)(2): Component 5 under §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 construction of facilities, etc.).

3.3 Terms and Conditions 3.3.1 For activities 1.1, 1.2, 1.3, 2.1, 2.2, 2.3, 4.1 Identification and analysis of applicable EU Acquis requirements and other relevant environmental considerations. Revised legislation and regulation will be in accordance with EU requirements and must meet all applicable EU environmental standards. The implementer will prepare such analysis as part of the intervention and the analysis will be subject to approval by the COR and MEO in consultation with the BEO.

4. Mandatory Inclusion of Requirements in Solicitations, Awards, Budgets and Workplans4.1. 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.

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

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

4.4. The IP shall incorporate conditions set forth in this IEE into their annual work plans.4.5. The IP shall ensure annual work plans do not prescribe activities that are defined as

limitations, as defined in Section 6. 4.6. 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 indictor is if the IP did the ERC/EMMP.]

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


DCN: 2018-BOS-003

insecticides, fungicides, rodenticides, etc. covered under the Federal Insecticide, Fungicide, and Rodenticide Act); and

5.11. Procure or use genetically modified organisms.

6. Revisions6.1. 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.


DCN: 2018-BOS-003

1. Recommended Environmental Threshold Decision Clearances:


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Approval : __________________________________________[Peter Duffy], Mission Director

_____________________Date

Clearance: ___________________________________________[Samir Dizdar], Mission Environmental Officer

_____________________Date

Clearance :___________________________________________[Kent Larson], Program Office Director

(required)

_____________________

DateClearance:

Concurrence:

___________________________________________[Ankica Gavrilovic],COR

___________________________________Mark KamiyaE&E Bureau Environmental Officer

_____________________Date

_________________Date


DCN: 2018-BOS-003

Distribution:IEE FileMEO (to also provide a copy to AOR/COR)


Documents

ecd.usaid.gov · Web viewTo determine mitigation measures for adding natural gas activities that will increase the ceiling, time, and expand SoW by adding Gas SOW