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LCQ20: Measures to improve air quality
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     Following is a question by the Hon Tang Ka-piu and a written reply by the Secretary for the Environment, Mr Wong Kam-sing, in the Legislative Council today (May 22):

Question:

     It has been learnt that the roadside air pollution problem has aggravated in recent years.  The Government launched the voluntary incentive schemes (VIS) in 2007 and 2010 to encourage vehicle owners to replace their pre-Euro and Euro I as well as Euro II diesel commercial vehicles (DCVs) respectively.  In view of the low participation rates of the two schemes, this year's Policy Address has proposed to set aside $10 billion to appropriately increase the financial incentives for phasing out DCVs which comply with emission standards below Euro IV (pre-Euro IV) in order to alleviate the roadside air pollution problem.  In this connection, will the Government inform this Council:

(a) whether it has assessed the causes for the aggravation of the roadside air pollution problem in recent years; if it has, of the details, and whether such causes include the increase in the number of DCVs; if it has not, of the reasons for that; the anticipated effectiveness of the plan proposed by the authorities to set aside $10 billion as subsidies for phasing out pre-Euro IV DCVs;

(b) of the respective numbers of vehicles participating in VIS in 2007 and 2010 and the percentages of such vehicles in the total number of DCVs, broken down by the use of the vehicles (e.g. nanny vans), the emission standard with which they complied and whether they were registered in the name of individuals or companies;

(c) whether it has compiled statistics on the average prices of various types of DCVs from 2007 to 2013 and their year-on-year rates of increase; if it has, of the details; if not, the reasons for that; whether it has regularly (e.g. on a quarterly basis) compiled statistics on the number of various types of DCVs;

(d) of the number of registered DCVs from 2007 to 2013, broken down by year, the emission standard with which they complied and whether they were registered in the names of individuals or companies (set out in Annex 1).

(e) based on the current natural phase-out rate and on the premise that replacement subsidies will not be provided, of the respective numbers of pre-Euro, Euro I and Euro II DCVs in 2016 as estimated by the authorities; the levels of emissions from such vehicles by that time, and the number of levels by which the pollutants concerned will cause the Air Quality Health Index (to be launched in 2014) to rise;

(f) whether it has regularly compiled statistics on the emissions from various types of vehicles (including franchised buses, taxis, light buses and DCVs, etc.) in Central, Causeway Bay and Mong Kok, and the proportion of such emissions in the total vehicular emissions; if it has, of the current situation; if not, the reasons for that;

(g) in respect of the emission reduction measures targeting at other sources of emissions (including power plants, vessels, franchised buses, liquefied petroleum gas taxis and light buses), of the estimated expenditure for each measure and the respective percentages of the quantities of roadside air pollutants expected to be reduced in the total quantities of the pollutants concerned (set out in the annex 2); and

(h) whether the authorities' plan of subsidising franchised bus companies to retrofit Euro II and Euro III buses with selective catalytic reduction devices to alleviate roadside air pollution will extend the service life and the depreciation period of the buses concerned; if it will, of the details; if not, the reasons for that; whether it has assessed the benefits to be obtained from the devices by franchised bus companies and the costs that the companies will need to share out; if it has, of the details; if not, the reasons for that?

Reply:

President,

(a) Between 2006 and 2012, the concentrations of sulphur dioxide (SO2), respirable suspended particulates (RSP) and nitrogen oxides (NOx) measured by roadside air quality monitoring stations in Hong Kong dropped by 52 per cent, 29 per cent and 12 per cent respectively, indicating that the vehicle emission reduction measures implemented by the Government have been effective to a certain extent.  However, the concentration of nitrogen dioxide (NO2) at roadsides rose by 23 per cent over the same period, resulting in the number of days with Air Pollution Index (API) exceeding the prescribed standard (i.e. over 100) to increase from 51 to 142 days.

     The relatively high level of NOx (including nitric oxide (NO) and NO2) emitted from vehicles is a major contributing factor to the high concentration of NO2 at roadsides.  Apart from direct emissions of NO2, the NO in emissions from vehicles will form NO2 by photochemical reaction in the presence of ozone (O3) or volatile organic compounds (VOCs) in the air.  Moreover, as the O3 level in the Pearl River Delta (PRD) Region has risen in recent years, the oxidation of NO to NO2 at roadsides is exacerbated, causing a rise in NO2 at roadsides.

     NOx at the roadsides mainly come from franchised buses, liquefied petroleum gas (LPG) taxis and light buses with dysfunctional catalytic converters and diesel commercial vehicles.  To improve the roadside air quality effectively, the Government has adopted a three-pronged strategy as follows:

(i) to conduct a trial jointly with the franchised bus companies on retrofitting Euro II and III franchised buses with selective catalytic reduction (SCR) devices to reduce NOx emissions.  Subject to satisfactory trial results, the Government will fund the bus companies for retrofitting these buses with SCRs.

(ii) to provide one-off subsidy to owners of LPG taxis and light buses to replace their catalytic converters. Upon completion of the replacement programme, roadside remote sensing equipment and advanced emission tests will be deployed to strengthen the control of emissions from petrol and LPG vehicles.

(iii) to propose setting aside $10 billion for adopting an incentive-cum-regulatory approach to phase out pre-Euro IV diesel commercial vehicles.

     Meanwhile, we will continue to co-operate with relevant authorities in the Guangdong Province to reduce emissions of major air pollutants in the PRD Region. This can lower the O3 level in the PRD Region and slow down the oxidation of NO emitted from vehicles to NO2 which causes air pollution.

     The above measures will help the levels of RSP and fine suspended particulates at roadsides meeting the new Air Quality Objectives proposed for implementation in 2014.

     Besides, the World Health Organization announced last year that emissions from diesel vehicles are carcinogenic. Phasing out pre-Euro IV diesel commercial vehicles can also reduce the risk of cancer due to exposure to emissions from diesel vehicles. The amount of RSP and NOx emitted from these vehicles can also be reduced by 80 per cent and 30 per cent respectively.

(b) The Government launched incentive schemes for replacement of old diesel commercial vehicles in 2007 and 2010 respectively.  The statistics on participating vehicles, broken down by the types of vehicles and emission standards, are set out in annex 3.

     The Transport Department (TD) does not have statistics on vehicles participating in the above scheme broken down by the types of registered owners (individuals or companies).

(c) We have not gathered information on the prices of diesel commercial vehicles.  The average taxable value of vehicles at first registration plus their total first registration taxes were kept in TD's computer database since February 2007. They can broadly reflect the prices of these vehicles. The relevant tax data on diesel commercial vehicles between February 2007 and the end of 2012 as gathered by the TD is at annex 4.  

(d) A breakdown of the number of registered diesel commercial vehicles (excluding franchised buses) by the emission standards for the past three years (i.e. between 2010 and 2012), as provided by the TD, is shown in annex 5. The data for 2008 and 2009 have already been sealed by the TD and are thus unavailable.  Moreover, TD does not have statistics on the number of registered vehicles broken down by the types of registered owners (individuals or companies).

(e) Between 2010 and 2012, despite the incentive scheme for vehicle replacement launched by the Government, on average only about 200 pre-Euro III diesel commercial vehicles were phased out each month. As at the end of 2012, there were around 49,000 licensed pre-Euro III diesel commercial vehicles on roads.  If the phasing out of these vehicles cannot be expedited significantly, we will still have nearly 42,000 pre-Euro III diesel commercial vehicles operating in 2016.  Given the low retirement rate of these vehicles and their ageing will lead to increased emissions, we anticipate that their emission level in 2016 will be about the same as present.  In other words, emissions from pre-Euro III diesel commercial vehicles will account for 80 per cent and 55 per cent of the total emissions of RSP and NOx from local diesel commercial vehicles respectively.  If the scheme for phasing out pre-Euro IV diesel commercial vehicles could not be rolled out as scheduled, the roadside API is expected to remain high as at the present, and we will not be able to comply with the standards for RSP under the new Air Quality Objectives.

(f) While the Environmental Protection Department (EPD) did not estimate the emission levels and profiles of vehicles in Central, Causeway Bay and Mong Kok on a regular basis, EPD estimated the emissions for the three pilot low emission zones in the above three districts in 2010.  The details are set out in annex 6.

(g) The estimated effectiveness of the emission reduction measures targeting at power plants, vessels, franchised buses, and LPG taxis and light buses are set out in annex 7.

     Details of the relevant measures and their estimated expenditures are as follows:

(i) To improve air quality, we have required power plants to obtain licences for their operation and adopt the most advanced and practicable emission reduction technologies since 2005.  In addition, we have also set and progressively tightened stringent emission caps for SO2, NOx and RSP since 2005.  

     Since 2008, three Technical Memoranda have been gazetted respectively, on which reviews have been conducted at least once every two years. In the latest Technical Memorandum gazetted in November 2012, we further tightened the emission caps which will be effective from 2017.  Compared to the levels in 2005, the new annual emissions of relevant pollutants would be reduced by 44 per cent to 87 per cent respectively against the total annual emission of relevant pollutants. In order to meet the emission caps, the two power companies have installed emission abatement devices in their main coal-fired units and used more natural gas and low emission coals for electricity generation to reduce emissions. The overall ratio of natural gas in the combined fuel mix of the two power companies for local electricity generation is expected to increase from 28 per cent in 2012 to around 50 per cent in 2015.  In 2011, the respective actual emissions from the power sector were reduced by 35 per cent to 82 per cent against the levels in 2005.  

     The expenditures for the Government for the implementation of the above control measure are absorbed by the resources provision of the Air Programme of EPD.

(ii) In September 2012, the Government introduced a three-year incentive scheme that waives half of the port facilities and light dues for ocean-going vessels (OGV) which switch to cleaner fuel (i.e. light diesel with sulphur content not exceeding 0.5 per cent) while berthing in Hong Kong waters. The Government is preparing to mandate OGV to switch fuel at berth by legislation and aims to submit the new legislation to the Legislative Council for consideration in the next legislative session.  The Government is also going to tighten the sulphur limit of light diesel used by local vessels from 0.5 per cent to 0.05 per cent by legislation which is expected to come into effect in 2014. Upon the implementation of the above two new measures, the emissions of SO2 and RSP in Hong Kong can be reduced by 24 per cent and 9.7 per cent respectively as compared to the levels in 2011.

     The expenditures for the Government for the above two schemes are absorbed by the resources provision of the Air Programme of EPD.

(iii) We are conducting a trial jointly with the franchised bus companies on retrofitting Euro II and III franchised buses with SCRs to reduce NOx emissions. Subject to satisfactory trial results, the Government will fund the full cost of retrofitting Euro II and III buses with these devices.  The trial commenced in September 2011 and we are now analysing the data together with the franchised bus companies.  The initial results of the trial show that SCRs can effectively reduce NOx emissions by more than 60 per cent for the bus models under trial.  Coupled with the diesel particulate filters already retrofitted, retrofitting SCRs could raise the emission performance of these buses to that of Euro IV and V models respectively. $550 million has been set aside by the Government for this retrofitting scheme.

(iv) In 2014, we will make use of remote sensing equipment to identify petrol and LPG vehicles with excessive emissions. The vehicle owners will be required to repair their vehicles properly and pass an emission test aided by chassis dynamometers to be conducted in a Vehicle Emission Testing Centre within a specified period.  Vehicles failing the test will have their licences revoked.

     As taxis and light buses run on high mileage and need more frequent replacement of the catalytic converters, the Government will, before the implementation of new measures, provide a one-off subsidy to owners of these vehicles to replace their catalytic converters and oxygen sensors so that they can be better prepared to the above measures.

     We estimate that about 80 per cent of petrol/LPG taxis and 45 per cent of petrol/LPG light buses have damaged catalytic converters, which have caused a ten-fold increase or more in emissions from individual vehicles.  Petrol/LPG taxis and light buses on busy corridors account for up to 40 per cent of the total NOx emissions and are one of the major causes of roadside air pollution. Replacing ageing converters on petrol and LPG vehicles can help reduce 90 per cent of emissions. It can also reduce fuel consumption and improve driving performance.  $150 million has been set aside by the Government for this replacement scheme.

(h) All franchised bus companies are required to operate their franchised bus services with buses under the age of 18, and have been replacing their serving buses accordingly. The objective of retrofitting Euro II and Euro III buses with SCRs is to reduce their NOx emissions.  The service life and depreciation period of the buses concerned will not be changed.  Subject to satisfactory trial results, the Government will fully fund the capital costs of retrofitting these buses with such devices, while the bus companies will bear the subsequent operational and maintenance costs. We are now analysing the trial data together with the franchised bus companies and will report the trial results to the Legislative Council. We aim to roll out the large-scale retrofit programme as soon as possible in order to improve air quality.

Ends/Wednesday, May 22, 2013
Issued at HKT 17:58

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